Which state tax should be deducted from my paycheck?

My wife is living and working in NY.
My employer is in NJ.
I am living and working in WA

I am working in WA State as a contractor. Received my first paycheck and employer deduct NJ state tax from salary. Which state tax should be deducted from my paycheck? State where I am working Or state where the employer has registered office?

FYI.:Washington has no state tax.

My wife and I are leaving separate (Due to different job location - different state). Can I file married-jointly for this year in 2005. (We were living together and filed jointly for last 3 years)

Thanks much for your time and help.

-Sanjay

[abezon]

You can file jointly. Your employer will deduct NJ state taxes until you establish residency in WA & inform your employer of this, at which point the employer will deduct WA taxes ($0). The employer may be thinking that your move to WA is temporary & your residence remains NJ, where your family is. To establish residency, get a new driver's license, register to vote, etc.