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If company is in state that has no state taxes

Posted By: nm on 2006-02-12
In Reply to: You are correct. The state that rules is the state the employee lives in. - sm

they are not required to take out state taxes.  It's enough to keep up with your own state tax law code, could you imagine having to stay abreast of 49 other state tax codes?  The cost would be huge and ultimately passed on to us by lower line rates.  Regardless of who owes the tax, someone has to pay it.  Just a matter of convenience I guess. 


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They must deduct FEDERAL taxes.. NOT STATE taxes.. if they took out state taxes.. it would be FLORID
which would only have to be refunded to you for you to pay YOUR state what you owe them which is nothing but a pain... be glad they weren't handling your state tax.. and I think in this case.. if someone at the IRS told you they have to deduct YOUR states taxes.. it is that person who is uneducated... they only have to deduce federal income tax

I work for a company in Florida too who gladly pays state taxes because
they know it is the law.
They should take out state taxes for the state
nm
Medware and state taxes
I was told by someone in the IRS that Medware should be taking out state taxes in my paycheck, but nothing has been done about this, and I have to pay my state taxes myself. I don't know how they get away with this.
state payroll taxes
My previous job was in the payroll department for a fairly large manufacturing company. We had employees in about 18 states other than NC. We had tax tables from any state that we had employees, and we were required to withhold based on those tables. We did have one that did not require us to withhold taxes but it wasn't Florida.
No. You have the taxes taken out for the state that you live in.
If you do not live in the state where the company is located, that state income taxes do not apply to you--only the state where you live applies to you. You do NOT work in the state where the company is headquartered. Ask any CPA and just look at the website of the state. You should not have taxes taken out for a state you do not reside because you do not have to pay taxes for a state where you do not reside. You only pay for a state where you live.
Medware & State Taxes
Actually, this is a common practice for many companies and well within the law. They can't take out your state taxes in Florida, (a) because Florida doesn't have state income tax, (b) you don't live in Florida, and (c) it would be quite a headache when tax time rolls around and you have to claim two states that you work in, even though you actually don't. I have paid my own taxes for years.

Plus, Medware states in their email that was sent to me: At this time today, if you are considering employee status we DO NOT hold out (state) income tax. We are a Florida-based company and Florida does not have state income tax. This will need to be filed by you individually depending upon what state you live in and whether or not you have a state income tax.
They also do not withhold state taxes and
there is no way that is legal in my state as it is my state law that if you are employed by an employer outside the state, that employer MUST withhold state taxes. My state has been investigating them for awhile but I still don't know what happened with that, but I will ask.

Reminds me of another company who used to withhold money for our insurance premiums. Well guess what...when we needed to use our insurance, found out there was none! They too were reported (this was not MW), but all we got was our money back that we paid for the insurance. Sad huh?

These companies are pathetic and I have no respect for this industry whatsoever.
SE doesn't take out federal and state taxes, only
x
If you are employee and have state taxes, your employer should take out.
I reported a company to my state, who clearly defines on their internet site that if an employee lives in our state yet works for a company in another state that might not have state taxes (for instance, Florida), the company in Florida HAS to comply with taking out state taxes.

From what my state told me, they fined the company heavily for not having deducted state taxes. Check with your state first and see what the law is.

This only applies to employee though.
They refuse to deduct state taxes, if that's
nm
They take out for FICA. You are responsible for state and fed taxes. nm

Does your MTSO take out all federal/state employee taxes? nm
nm
I have never had a problem with an employer withholding state taxes except with one
employer. They say they do not have to but my state says they do. Just the fact that my state sent me back all their late fees because I refused to do the job of the employer tells me I was right in waiting to pay until tax time. That brought it to the attention of my state. I can't wait to see the get the penalty and interest my state will charge them. I know it will take some time for the state to research how many work in my state (and I know at least six minimally), so I will just sit back and wait. My state does not give money back to you readily. LOL High state taxes so when you get your late fees back, you know then the employer being fined is only a matter of time.
Unless something has changed, health insurance rates vary state by state, so we may not have the
info you need.  I'm an IC so I don't have benefits.
You are correct. The state that rules is the state the employee lives in.
My state laws has is spelled out in their Code. If another state does not withhold, they are fined heavily and if they don't withhold for years, their fines are pretty bad. I worked for a Florida co that did not withhold income tax for my state even after I brought it to their attention in the state code. They kept saying that they would eventually and never did. After two plus years and when I left, I made it known to my state all the conversations, the state refunded me all late fees they charged me and then said they were going after the company in Florida because they had many employees in our state. They deserved it. They knew better.
The state you live in or the state where the MTSO is located? nm
nm
Not state by state, federal labor law - sm
and you don't have to be asked. If you work it, asked or not, they have to pay time and a half OT rate for hours worked over 40 in a week.

Taken right from U.S. Dept of Labor -
An employer who requires or PERMITS an employee to work overtime is generally required to pay the employee premium pay for such overtime work. Employees covered by the Fair Labor Standards Act (FLSA)MUST receive overtime pay for hours worked in excess of 40 in a workweek of at least one and one-half times their regular rates of pay. The FLSA does not require overtime pay for work on Saturdays, Sundays, holidays, or regular days of rest.

Extra pay for working weekends or nights is a matter of agreement between the employer and the employee (or the employee's representative). The FLSA does not require extra pay for weekend or night work or double time pay.

Different state to state. You would be surprised to find

IC can be defined differently state to state.  Even the IRS cannot come up with a definitive set of rules.  You would be surprised how many ICs actually get unemployment in some states.  If the unemployment claim form asks specifically if you are an independent contractor, do not lie, but if it does not, do not volunteer it.  Let the company prove you are a true IC according to the rules of your state.  All you lose is a few minutes filling out the claim form.  I would only do it as a last resort.  If you can find work fast, by all means go for it, but the way things are now with all the VR and off-shoring, it is a backup if you cannot find work.  No one should go hungry because they are afraid to file for Unemployment as an IC. 


 


I am not an IC, but my company is in a state that
doesn't have state tax and therefore they don't pay any state tax.  I just have extra $$ taken out of DH check to cover me.   The first year I underestimated and got a penalty of about $55 for underpaying, but after that I've gotten a little back, so we finally found the balance. 
what state is this company in?
nm
Can you state the company.....sm
It would help others maybe avoid this person/company?
Can you tell me the state this other company in?
NM
Look it up in the state the company is located. sm
You should be able to download a form or they'll send you one. 
Yes it is, but they didn't state the name of the company
.
What company is this? Or at least tell us the state in which it is located, please.

can you tell us which state or company? Are you an employee or IC? sm
I know that a certain company in NY was investigated a few years back because of treating ICs like employees.

I hope it is not the company I work for as I am finally happy after being miserable for the last 3 years and 50 jobs.
It varies from state to state
nm
Varies from state to state
My own state recognizes partial unemployment, too, when your work gets cut down to half of your regular workload/income.
Anyone who works for a FL company, pls see FL state board. Thanks. NM
xxxxx
If your company is never out of work or always back-logged, can you state the name? Thx. nm
,
I'm like to know the answer to her post also. I have worked for an MT company in NY state,
and while I lived in another state at that time, I received full benefits; Ic or employee status had no bearing on receiving benefits.  If I were the original poster, I would check this company out very thoroughly. Something just doesn't sound right tax-wise.
Acutally it's the Mass. Sten-Tel. Hmm...same state as your company. In cahoots, maybe? nm
s
Without Naming Company, Does anyone know cost of COBRA for out-of-state employees?
x
I am not sure which State
The person I had E-mail contact with was named "Suzanne". I have no other info.

Thank you.
Perhaps not in your state.
NM
State tax
No, I'm sorry, but deducting state tax is a cost of doing business and it is a very small cost to the employer. Medware is a lazy, greedy corporation, and that is why they don't deduct state taxes.

It is very simple to do payroll nowadays - it's all on computer and the payroll programs have all the states' information in them and all it takes for Medware or any employer to pay the individual states is to electronically transfer the money, which is set up at their bank.
can you tell us what state they are in so I that I do not
make that mistake?
My state too...
Of course he wouldn't want to see them. He refuses to see reality all around him. He still thinks we have it soooo good. I agree with you. Heaven help us all if the Haliburton puppet becomes the legal ruler when the present king steps down.... hopefully his health issues will preclude that. Oh, yes, I do wonder if his medical records are transcribed in India?
Don't pay them yourself. I did not and my state says they
are going to take action against MedWare. My state apologized to me for charging me late fees (I refused to send in state taxes to the state because I was an employee and because it was written plain as day in my state law that they should be taken out by the employer). I was with them for 3 years and all those years I got charged like a $10 fee each year for paying state taxes late. My state REFUNDED all my late fees to me and apologized stating that they were investigating the practices of the company. Don't know whatever happened with that, but last I knew they were looking into it. My state did not penalize me at all so by refunding all their late fees, that tells me that they know it was not my fault.
Each state has its own law regarding
this. Some states have a 3 day requirement, makes no difference whether you quit or got fired.
I am not sure in your state...
However, Unemployment Insurance also covers underemployment in my state. That is if you are downsized and can prove you are making less than 70% of what you made before, you are eligible to draw partial unemployment benefits. That may be retroactive (I believe there is only a 1-week waiting period), and may help your immediate mortgage trouble.

The caveat is that you have to be actively looking for work but basically that means you have to have made 2 job contacts during a week, which would be very easy to do in this profession.

It would be worth checking into for you as unemployment benefits are usually paid weekly. You may find yourself in better shape by next week already. Good luck!
What state are you in?
When I worked at home for a hospital in New Jersey, I received state disability pay when I went on maternity leave.
State...
I live in Maine, which makes it difficult because I am not close to any of these companies. There are not many hospitals around here and they outsource to companies like what I already work for! I am just stuck and it is frustrating me...I just find it hard to believe that there are not more people out there in my situation!!! I feel like I have been discriminated against because I am young because most MTs are older (not that there is anything wrong with that) and that is something I have had to deal with in this job a lot!!!
Their state. sm
The state the MTSO is in.
There are at least 2. Which state is yours in? nm
s
But get this, in my state we still have to
file state income tax..... That is why I said that, realize the differences
There are 2. What state are you looking for? nm
s
Think there are 2. What state is yours in? nm
s
I don't think it has anything to do with your state.

 


The premiums depend on family, single, 1+1, etc. 


What state is this one in? Several out there
s