California domicile, florida resident, working as a florida remote employee

[mlex23]

I have a complicated situation I was hoping to get assistance with.

I am a married California resident. My spouse also lives and works in California. We also own our home in California.

I recently accepted a position in Florida (the company does not currently offer employment in California) for remote employment(W2). I gave a florida address (I do not own this property) which I intend to live seldomly  throughout the year. My company does not restrict remote work from any location(us only) as long as the residence is established in Florida.

I understand my employer will tax me as a florida resident, however I do still want to pay my California state taxes on all income earned to avoid any tax complications. I assume since I do plan on paying California state taxes I should be okay?

How should I go about paying my California Taxes throughout the year?

Are there any risks? 

Does this affect the employer? 

Since Florida has no state taxes it should not increase my tax obligations compared to if I lived in California and worked for a California based company, right? 

What am I missing? 

Thanks

[BillM223]

"the residence is established in Florida." - what does the company mean by this? Tax Residence? Domicile? Physical Residence?

As you know, Florida has no state individual income tax. So why would the company want you to establish residence there, unless they don't mean for tax purposes, but perhaps something else.

If you change your domicile to Florida, then you won't owe CA taxes, although this may complicate your life vis-a-vis you and your spouse in your tax returns.

[mlex23]

hey bill,

They are referring to Physical address. I'm not sure why but it might have to do with the labor laws in california.

I dont want to change my domicile and I dont want to make things complicated. I WANT to pay california tax. My concern is.... is this okay going about it this way?

How should I go about paying my CA tax? Do I have to do anything special?

Does this affect the employers tax liability?

 Am i subject to additional taxes outside of normal CA tax?

[Vanessa A]

I WANT to pay california tax. My concern is.... is this okay going about it this way?  Yes and no.  You really should use your legal address since you would not be having CA SDI withheld, however, if you use your FL address, as long as you pay all of your taxes, then you would be fine.  It would be similar to someone who is self-employed. 

How should I go about paying my CA tax? Do I have to do anything special?  You will need to pay estimated quarterly tax payments either online through the CA payment center or by mail. 

Does this affect the employers tax liability? Not really.  The employer only pays FICA taxes and has to withhold federal taxes.  They do not pay state taxes other than unemployment taxes.  This could affect your unemployment eligibility since you would not have any withholdings for the state you reside in, if you would be laid off, but you would have to check with the state to determine that.

 Am i subject to additional taxes outside of normal CA tax? No.  FL does not have a state tax.  You just need to pay taxes in the state you are living in.  If your second home was in a state with taxes, you may have more of an issue.