I agree with @Hal_Al. NYS Tax Memorandum TSB-M-06(5) specifically states:
"The memorandum addresses situations where a nonresident or part-year resident employee whose assigned or primary work location is in New York State performs services for an employer at that location and at a home office located outside of New York State."
TSB-M-06(5)I:(5/06):New York Tax Treatment of Nonresidents and Part-Year Residents Application of th...
Thus, if the employee performs no services at the New York location, the memorandum does not apply.
Also, in this case the employee's "assigned or primary work location" is clearly in Kansas, not in New York State. The employer is withholding Kansas taxes only.
In my opinion @cth3md has no tax obligation to the state of New York, as long as he/she never works at a New York location. Thus the employer is correct to withhold Kansas income tax only.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
