Expert: Arthur Naman - 11/18/2008

Question
I am starting to do the payroll for a Florida based LLC. There are currently 6 employees, 2 including myself doing office work. 4 employees are basically repair & aintenance guys who will be working in both Florida & Alabama. They
are residents of Florida.

Do I report their income for each state or just Florida?

My other question is workmans comp insurance, is it needed for both states?

Thank you for your help.  

Answer
Thank you for your comments and rating especially considering it took me so long to respond.

What ever you choose to do regarding payroll taxes and workman's comp, please be confident of your decision if you choose *not* to withhold as states can be kind of difficult in collecting payroll taxes.

Also, you might remind your employees that they will be filing state tax returns in those states for which you as their employer pay wages and file a W-2.