nanny lives in MD, i'm in VA, which state unemployment tax to withhold?

[Anonymous]

confused... she works at my house in VA.
but as i understand it in the metro area you pay tax where you live not where you work?
so should i withhold MD state unemployment tax, and apply for MD EIN?

[Anonymous]

She pays taxes in the state in which she resides. You are the employer in the state in which you reside.

[Anonymous]

I'm not a tax expert, but I live in DC, employ a nanny who lives in MD, so I withhold MD income tax but pay DC unemployment tax and I'm pretty sure I'm doing it the right way. So yes you will need to sign up for the Maryland tax site, which fortunately makes it very easy to file and pay taxes online.

[Anonymous]

You never withhold unemployment tax - you pay it to the place where the work is done. You do withhold income taxes and in the DMV it is where the worker resides.