working remotely

[mkathyf]

What is the name of your state? Ohio.
Asking for my daughter: She works for a National (also Canada) company which had it's corporate offices in Ohio; but closed the offices during Covid Shut down. All employees who returned after the layoff now work remotely. My daughter saw this as an opportunity to live in California and continue working remotely. We have been trying to read as much as possible about tax obligations, but it is a bit vague (with twists and turns). She sublets an apartment with another person; but that person may be leaving, soon. My daughters original intention was hoping to stay 8 months to a year. (it could be less)
In Ohio, she lives with her brother; where all her mail continues to be delivered. She still has her Ohio drivers license, bank account, voter registration, etc. From some of my reading, it seems as if you frequent a California bank, often, or your cell phone records indicate you are there for a certain period of time, (even grocery receipts), that you can be considered a California resident and subject to their state taxes.
Any insight will be much appreciated.

 

[davew9128]

She's a CA resident the minute she signed a lease and began living there.

 

[PayrollHRGuy]

As far as employment tax issues go if she is working in Califonia she is taxed in California.

 

[Taxing Matters]

Even if she were not a resident of CA she would be subject to tax in CA on the wage income she received for the work she did while in that state.

 

[Zigner]

She still has her Ohio drivers license, bank account, voter registration, etc. From some of my reading, it seems as if you frequent a California bank, often, or your cell phone records indicate you are there for a certain period of time, (even grocery receipts), that you can be considered a California resident and subject to their state taxes.
Any insight will be much appreciated.

Beyond taxes, it sounds to me like your daughter has broken laws concerning her driver's license, voter registration, etc.

 

[adjusterjack]

Beyond taxes, it sounds to me like your daughter has broken laws concerning her driver's license, voter registration, etc.

Not necessarily. Many people maintain residences in two states without breaking any motor vehicle or any other laws.

 

[Zigner]

Not necessarily. Many people maintain residences in two states without breaking any motor vehicle or any other laws.

While true, that's not what's happening here. The daughter moved and established residency in California.

 

[LdiJ]

Ohio is going to go after her for state taxes too. In the end, she is going to end up paying in two states because both states will consider her a resident.

 

[mkathyf]

Beyond taxes, it sounds to me like your daughter has broken laws concerning her driver's license, voter registration, etc.

She has been there only a little over a month. Originally, her plan was to stay July through September, then return home. It was basically intended to be an extended vacation; since she could work remotely. From different articles I read, residency begins after 6-9 months; but I can't clearly confirm that.

 

[mkathyf]

Ohio is going to go after her for state taxes too. In the end, she is going to end up paying in two states because both states will consider her a resident.

That's what we kind of figured. Her company has continued to take out Ohio state tax; but, they aren't taking out CA state tax.

 

[mkathyf]

While true, that's not what's happening here. The daughter moved and established residency in California.

she is renting a bedroom in someone else's condo...much like an airbnb.

 

[mkathyf]

As far as employment tax issues go if she is working in Califonia she is taxed in California.

thank you

 

[Zigner]

She has been there only a little over a month. Originally, her plan was to stay July through September, then return home. It was basically intended to be an extended vacation; since she could work remotely. From different articles I read, residency begins after 6-9 months; but I can't clearly confirm that.

You can't find anything to confirm that because it's not a hard and fast timeline. It would depend on her intent. Based on that, I am going to retract my prior statement and say that, based on everything you've posted, your daughter hasn't established residency in California. Keep in mind, though, that the burden will be on her to prove her intent, if it should come up.

 

[davew9128]

That's what we kind of figured. Her company has continued to take out Ohio state tax; but, they aren't taking out CA state tax.

Then they have another problem. Depending on the nature of the work she does and how much they pay her, as an employer not only are they supposed to be reporting her CA sourced payroll, but they have a corporate tax filing requirement in CA.

 

[LdiJ]

Then they have another problem. Depending on the nature of the work she does and how much they pay her, as an employer not only are they supposed to be reporting her CA sourced payroll, but they have a corporate tax filing requirement in CA.

It may be that the company doesn't even know since she is working remotely.