Accounting, Payroll & Pension Issues/payroll

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Expert: - 8/29/2008


Question
Hello, my father owns a network service company and until just last week he started doing payroll and added me as his first employee. Now the company is an LLC located in NJ and I live in NY. most of the job is being done in NY but in the near future we will do business in NJ, this is a onsite service company, there is no store in NJ. The question is how do we have to do payroll, do I have to pay NY and NJ taxes even thought i live and work in NY. Do we have to register the company in NY also? what is the best way to do this? does the company has to pay NY taxes also?

Answer
You will have to file taxes on New York for your total income and taxes in New Jersey for the work done in New Jersey. You can take a credit on your New York return for the amounts paid to New Jersey.

Your company can withhold taxes in New Jersey and not file in New York, however, you have to pay taxes in New York on total income and taxes in New Jersey on income earned while working in New Jersey.

If the company only holds out New Jersey taxes you may owe at the end of the year since New York taxes are higher than New Jersey Taxes.

Shirley

Accounting, Payroll & Pension Issues

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Shirley McAllister, CPP, PHR

Expertise

I can answer payroll questions, payroll tax questions, 401K questions. No stock option questions please and I have some knowledge of other pensions but am most familiar with the 401K pension. I can answer U.S.and Canada payroll questions proficiently and have a good general knowledge of UK and South Africa and some knowledge of Australia and New Zealand Payroll procedures. Please do not ask me homework questions I do not have time to answer them.

Experience

25 years with an international company in the Human Resources, Payroll and Payroll Tax areas.

Organizations
SHRM, APA, I.O.M.A.

Publications
I.O.M.A. and BNA

Education/Credentials
P.H.R., C.P.P., Canadian Payroll Administrator, Successfully passed APA class on UK Payroll Administration. Boise State University Human Resource Certification

Awards and Honors
APA Hotline Citation of Merit for last 8 years.

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