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My son moved to Kansas last summer to begin work for a Kansas City, Missouri employer. It is his only employer for the year. Never a MO resident. He initially started working in MO office only.  Then in the fall, he started to work remote some days (hybrid) in KS home and changed withholding to reflect that (from a new nonresident MO W-4A filed for 84% MO as remote days started).  The W2 Box 16 State Wages are based on the MO W-4A allocation which changed from initially 100% MO then to 84% MO in the fall.   How are “Missouri Sources” wages determined for MO-NRI form, Part B, Line A? From the W2 Box 16 State Wages only? Results are MO 89% of Box 1.   This income reflects changing the MO W-4A percentages in the fall with remote wages recorded as they were earned. Or from calculating percentage days {MO Days/Total Days Worked}*(Box 1 income)? Results are MO 88% of Box 1.  This results in a $500 lower income allocated to MO than what is listed in Box 16.   This is similar to the Kansas City tax formula which uses Remote Days Percentage applied to entire Box 1 income (so the KC tax form income doesn't match its KC W2 income either, but this is their formula). Does Missouri want to see Box 16 wages or does it want to see the percentage income based on percentage of days in MO.  I’m concerned something will be flagged between MO and Kansas City taxes if 2 different taxable incomes are used, but I'm also concerned that MO would target the return if Box 16 wages weren’t used?  Shouldn’t taxes be the time to reconcile the reporting/allocating of income? Or is the W-4A supposed to be completely accurate as to where the employee does remote days?

I work for the federal government and my place of work changed partway through the year from ON to QC, so they issued 2 different T4s. The first one, from ON, includes the maximum CPP contribution and part of CPP2. After my place of work changed to QC, I paid the balance of my additional contribution to QPP2. So the QC T4 and its associated RL1 show a QPP2 contribution with no QPP contribution. This is not an error; it is exactly as it should be.   The software however treats it as an error and will not let me enter QPP2 without QPP. After a full hour on the phone with your tech support, I received this: "This is not a software issue, because if you have a 2nd contribution (box 16A/17A), you should logically have a 1st contribution (box 16/17). Technically, both amount should be on the same T4. If the last version of your T4 on your CRA My Account is not with box 16/17 and box 16A/17A on the same slip, we suggest you to contact CRA to see if you can combine both T4s together to have only 1 but with all the amount reflecting your tax year."   This demonstrates a troubling misunderstanding of the tax rules. And i cannot combine the two slips, because the province of work in box 10 is different. The software needs to be modified to allow for this situation.