Accounting, Payroll & Pension Issues/Missouri State Taxes

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Expert: - 1/18/2010


Question
If an employee works for a Iowa company but lives in Missouri, can Iowa state taxes be taken out?

Answer
Are you actually working in Iowa or in Missouri? The taxes are withheld where the work is being done.

There is no recipricol agreements , however, if you work in Iowa and live in Missiouri than you would have Iowa taxes withheld , file a non resident return in Iowa and pay the taxes, than you would file a resident return in Missouri and would get a credit for the taxes paid to Iowa but would owe taxes actually in two states.

If you live in Missouri and work in Missouri than Missouri taxes are withheld. It doesn't matter if you work for an Iowa company, if the work is being done in Missouri the taxes are withheld and paid to the state of Missouri.

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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