Why should he pay taxes?

[lagilday]

What is the name of your state? New Hampshire

My father works for a security company out of New Hampshire. He also lives in New Hampshire. Some of his posts are in Massachusetts. He has worked there 5 years. About 3 months ago he started noticing Mass employee taxes being taken out of his check. When he questioned it the company stated that it was a "new law" and they had to. My father asked why he was not told in advance of this and if he could see documentation. They said they will look for it. Three months later he has not received documentation and they are still taking money out. Is this legal? He is afraid of repercussions if he pushes the issue. I say he has the right too. And he can't be fired for asking valid questions. Does this sound fishy?

 

[Beth3]

Ya got me. Tax laws can be darned quirky. Why doesn't your father consult with a tax accountant or advisor - or even contact NH's or MA's internal revenue service and ask? He doesn't have to wait around for his employer to give him an answer which apparently isn't going to happen anyway.

 

[pattytx]

Because the Massachusetts law says so. See page 5 (right-hand column) here:
http://www.dor.state.ma.us/publ/pdfs/withhold.pdf

 

[lagilday]

Nope..read the article you supplied...it does not apply. The company is in NH, he lives in NH, but has a post in Mass. Because the company is in NH, mass tax should NOT be taken out UNLESS my father RESIDES in MA or the company is out of MA. Neither is true. That would be like someone living in NH, going to TN for a business meeting and having the company take TN taxes out because for those 2 or 3 days they were in TN.

 

[Some Random Guy]

That would be like someone living in NH, going to TN for a business meeting and having the company take TN taxes out because for those 2 or 3 days they were in TN

You are apparently not familiar that Major Leage Baseball players and NFL players have to pay state and city taxes for their away games. States are changing their laws to try to squeeze every red cent out of visiting 'businessmen'.

 

[pattytx]

I've worked in multi-state companies and managed payroll for over 20 years. I know how to read an employer tax guide. And, this is not a new law; it has been in effect as long as I can remember and it appears the employer has just started complying. If the employee performs services in the state, MA income tax withholding is required. It doesn't make any difference where the company headquarters is located. If the company does business in the state, they are subject to the state tax laws. Call the MA Dept. of Revenue if you don't want to believe me.

Oh, and BTW, your use of Tennessee as an example shows what you don't know. Tennessee doesn't have a state income tax.

 

[lagilday]

Ok, maybe I am not explaining it correctly, because y'all were quick to jump all over me. And no pattytx, it is not that I don't believe you, it is just that it doesn't seem possible that a company that has been in business for over 50 years is suddenly deciding to "follow the law"? They are stating that it is a "new law" (I work for a restoration company in NH and we have crews that work all over New England. Our employees ONLY pay taxes if they LIVE in a state where taxes are taken out...(i.e. MA, CT, ME) If they live in NH, they do not. That IS the law in NH and we have not heard of any "new law"). If this was all hunky dory wouldn't they be able to supply him with proper documentation? Thanks for the input, I think I will call the DOL and get a copy of this "mysterious new law"

 

[cbg]

Patty is correct.

I have also done a number of years of multi-state management and every time we got a contract in a new state which meant that we needed to have an employee in that state, we had to apply for an employer number in that state, begin paying taxes there, workers comp, unemployment, the works. That held true whether the employee was going to be there for a month, or two years.

And I don't find it difficult to believe at all that a company who has not been following the law for 50 years might have gotten their wrist slapped and told to follow it in the future, and do it. So just because they haven't done it in the past, doesn't mean it hasn't been the law.

 

[pattytx]

I already gave you the law. It's in the Massachusetts Employer Tax Guide for which I provided the link. And it's not the Dept. of Labor that enforces tax law, it's the Dept. of Revenue or Taxation, or whatever they call it in Massachusetts. And, and previously stated, it is not a new law; the employer probably got in trouble for not withholding and now they're doing it. The laws of the state in which the employee works always control, unless the work state has an agreement with the resident state so that resident state taxes can be withheld instead of work state taxes. Since there are no income taxes in New Hampshire, a reciprocal agreement could not exist.

Call the Dept. of Revenue if you want, but they'll tell you the same thing.