I have a question about working an an online employee as a W-2 worker for an employer that is (or might be in a different location from where I live).

If workers (as employees of a company) work online for a company, and the workers do business with/service clients (and if the clients have businesses in different states (clients having a/their business located in one state or having a/their business located in one state and then also that same business located in other states) of the United States (and the workers are working online for the company they work/as an employee of the company they work for) how would the workers of the company or the company (if at all) pay the taxes, account for the taxes, deal with the tax (and what are the workers exactly--an independent contractor getting a 1099-MISC independent contractor form (or whatever other 1099 form for tax filing the next year) of the workers (while the workers do business with the clients, deal with clients, work with clients or whatever else with the clients (doing anything with those clients online) while the clients are in, live in or are doing business in other states or countries (or wherever or whatever else) (other than where the worker lives)?

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https://ttlc.intuit.com/questions/2584365-am-i-an-employee-or-an-independent-contractor

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

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It's not exactly what I need to know but thanks for your help.

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an employee is an employee and no law changes that.   if you are an employee of a company in state X that does work for a company in state Y. then you have to look to several issues - do you have any physical presence in state Y? does the company that pays you have any physical presence in state Y? if both are no there would be no tax liability in state Y.  if you have a physical presence in state Y, then you have to read the laws of the state to determine if you have liability - every state with an income tax has different laws.  if you work from state X for your company that also has a physical location in state Y and you perform service for the Y division again state laws would determine if you have liability.   in either case, most of the responsibility for reporting wages properly to the state falls on the employer. 

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First you need to determine if you are a W-2 employee or a sub contractor  and then you need to research the tax laws for the state you live in and the state were the employer is located that you are doing the remote work for.  Once you have those 2 pieces of the puzzle post back. 

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@nicholas_peters_ wrote:

It's not exactly what I need to know but thanks for your help.


Generally speaking, you pay income tax in the state where you physically live, and where you physically work.  If they are different states, things can get complicated depending on which states, because some states have reciprocal tax agreements and some don't.

 

More specifically, if you are an independent contract reporting your income on a schedule C, you will file a state tax return for the state in which you live, that reports all your world-wide income.  If you physically travel to other states to work for some of your clients, you will owe a non-resident tax return for each state you work in, to report in-state source income.  Then you file a resident return for your home state that reports and pays tax on all your income, and you get tax credits for taxes you paid to other states that lower your home state tax bill so you aren't taxed twice on the same income.  If you work in more than 5 states, you may want to use a tax professional, because Turbotax has some limitation when you have more than 5 states.  

 

If you are a W-2 employee, you owe a resident tax return for the state you actually live in.  If you work in other states, you owe a non-resident return for the share of your income earned in those states.  If you telework for a company in state A, but you actually live and do the work in state B, you owe a state B tax return but not a state A tax return,

 

EXCEPT that there are 6 states that will tax you if you work for a state employer even if you work out of state.  These states are Connecticut, New York, Pennsylvania, Arkansas, Delaware and Nebraska.   These states apply a "convenience of the employer" rule.  If you live in another state, and work for an employer based in one of these 6 states for your convenience, you owe income tax to that state.  If you work out of state for your employer's convenience, you don't owe tax to that state.  Here is New York's memo on the topic, other states use similar rules.

https://www.tax.ny.gov/pdf/memos/income/m06_5i.pdf

 

Even if you are working out of state for your employer's convenience, you would owe in-state tax for any days that you travel to headquarters (such as for meetings, training, etc.)

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I know I have a lot to make sure of with an employer.   

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I'm trying to figure it out completely with an employer I am trying to get work with soon. I know I have to go through everything and understand everything with regards to my whole situation with this employer.