Payroll Tax Question

[Anonymous]

I am attempting to set up payroll for a new employee who will work in DC but lives in Maryland. My understanding is that I will withhold from her paycheck: (1) federal taxes and (2) Maryland state taxes. I will then pay DC state unemployment insurance and have a DC workers' compensation insurance policy. Does that sound right to folks?

[Anonymous]

Yes.

[Anonymous]

I second the Yes.

[Anonymous]

If you want to make it easier for yourself, you can withhold federal, and have her withhold her own state.

[Anonymous]

Anonymous wrote:If you want to make it easier for yourself, you can withhold federal, and have her withhold her own state.

Maybe, but I think most nannies would prefer to have the taxes deducted every pay period.

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you want to make it easier for yourself, you can withhold federal, and have her withhold her own state.

Maybe, but I think most nannies would prefer to have the taxes deducted every pay period.

Depends on the situation. I've worked for an employer who was still waiting on a state EIN, so I know how to deal with it. Of course, I've also dealt with an employer who didn't deduct anything other than what they matched (SS/Medicare), and I took care of my own taxes. OP, talk to the nanny, see what she prefers.

[Anonymous]

Anonymous wrote:I am attempting to set up payroll for a new employee who will work in DC but lives in Maryland. My understanding is that I will withhold from her paycheck: (1) federal taxes and (2) Maryland state taxes. I will then pay DC state unemployment insurance and have a DC workers' compensation insurance policy. Does that sound right to folks?

Yes