I lived in an apartment in New Jersey for the first 6 months in 2022 while working for my employer located in New Jersey. I am on work visa (H1B) and in process of green card application.
Due to the delay of application date and delay in processing time, I had to stay out of USA for 1 year. As a result, I am working remotely for my employer from outside USA since July 2022 while continuing to receive pay in USA, and expecting to return to New Jersey in July 2023.
I stored my belongings in a storage warehouse, and used my friend's address for USPS mail forwarding. I currently do not rent apartment and do not own housing in USA.
I requested my employer to change my address on W2 to my foreign address, but they refused to do so, so my address on W2 is still my previous apartment address in New Jersey which I already surrendered. This caused my employer to continue withholding NJ taxes (state tax, SUI, FLI) from my paycheck.
Looking at page 8 from below, it seems I should not be taxable in NJ from July 2022 onward, since I do not work or live in NJ.
https://www.state.nj.us/treasury/taxation/pdf/current/njwt.pdf
"If a nonresident employee works inside and outside New Jersey, only the compensation paid for work performed in New Jersey is subject to New Jersey withholding."
Is my understanding correct, and if so, is there any way to stop my employer from withholding NJ taxes?
Thank you.
