topic Live in CA, paid by Employer in NC in State tax filing

Live in CA, paid by Employer in NC

heatherwh — Wed, 14 Oct 2020 19:43:42 GMT

The non-profit I work for is considering moving from CA to NC. I live in CA and will continue to work remotely in CA.

1.) How will this affect the non-profit, regarding the employer contribution tax they pay here in CA? Will they still have to pay that to CA because I live and earn income here? Or would they fall under NC non-profit tax rules and not have to pay this tax to CA?

2.) Would this affect my own personal state taxes, being that I will work for a company based in NC?

Thank you in advance for any help. I would be happy to answer any questions if anyone needs some clarification 🙂

Re: Live in CA, paid by Employer in NC

TomD8 — Thu, 15 Oct 2020 13:59:57 GMT

Since you will continue to be a resident of CA, ALL your income will remain taxable by CA, regardless of your employer's location. Your income would not be taxable by NC so long as you never actually (physically) work in NC.

A handful of states tax non-resident remote workers, but NC is not one of them.

This is an income tax forum, and questions about employer state tax obligations are beyond its scope.

Re: Live in CA, paid by Employer in NC

heatherwh — Thu, 15 Oct 2020 16:30:17 GMT

Thank you Tom, I appreciate your feedback!

Re: Live in CA, paid by Employer in NC

TomD8 — Fri, 16 Oct 2020 19:18:25 GMT

Be sure to ask your employer if they will still withhold CA taxes for you after they relocate to NC. If they will not or cannot do so, you'll have to begin making quarterly estimated tax payments to CA. You can find the details on that here:

https://www.ftb.ca.gov/pay/estimated-tax-payments.html