Multi-State Tax Issues for Payroll 2026

Overview:

• Understand nexus and how employment within a state may create nexus for an employer
• Understand the payroll tax and compliance implications of conducting business within a state
• Determine which state(s) to withhold for when employees work in multiple states under the general rule
• Determine which state(s) to withhold for when states that have reciprocal agreements or no state income tax are involved
• Know when state or local withholding certificates or certificates of non-residency are required
• Determine which state is the state unemployment tax state when an employee works in more than one state
• Understand that state rules differ with regard to taxable income, withholding thresholds, wage reporting and fringe benefits
• Learn how to avoid failure to withhold penalties

Areas Covered in the Session:

• Reciprocal agreements and how they affect state income tax withholding 
• Employee domicile and tax residency
• State and local withholding certificates- when the federal W-4 isn't enough 
• How different states deal differently with supplemental wages  
• How to handle state unemployment when employees work in several states 
• SUTA dumping- what it is and how to avoid this penalty trap 
• Which states get withholding tax proceeds when employees work in multiple states 
• Fringe benefit taxation- which states differ from federal rules 
• The payroll tax implications of conducting business in a state 
• How to determine the states for which you must withhold tax 
• Special rules for military spouses
• Telecommuting

Who Will Benefit:

• Payroll Supervisors and Personnel
• Payroll Consultants
• Payroll Service Providers
• Public Accountants
• Internal Auditors
• Tax Compliance Officers
• Enrolled Agents
• Employee Benefits Administrators
• Officers and Managers with Payroll or Tax Compliance Oversight