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Money and Finances
Reply to "Consultants, travel, income taxes "
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]If you work for a large international consulting company out of a specific office in one state (where you are also based) and then work for a client on a project in a different state, do you then pay separate income tax to that state? Even if you are paid by the consulting company and not the client directly? So if over the course of the year you work on 3-4 projects in various states you could potentially have to file 4 income tax returns? I feel like that's not correct.[/quote] I worked several years at a big 4 consulting firm. It wasn't unusual for me to file in 6+ states. The firm grossed up wages to account for tax issues that resulted. Also worked for a top tier bank that refused to gross up and that insisted it was our problem despite temporarily assigning us to states where tax obligations would be triggered. [/quote] Me too. Most states don't trigger the tax obligation until you have worked 30 days in the state. CA triggers it on day 1, as do a couple of others I used to have to include location codes with my time records so that's how the company recorded it. [/quote]
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