I live in Mass and work remotely in Florida, is my employer required to withhold MA tax?

[Jpitts10]

I am a resident of Massachusetts and work remotely for a company that has business locations in IL and in FL. My paychecks reflect their business name with the IL address, my Massachusetts address, but they tax me out of FL which is NO tax. I pay federal tax. When it comes time to file my taxes, I owe mass resident taxes each year. Are companies required to withhold the taxes in which their employees reside in? If there is ever a time I become unemployed, where would I file for unemployment- in MA where I worked remotely and paid MA income taxes or FL where they tax me out of?  

[GeorgeDenseff]

Your company is not required to withhold state taxes.  Many do it but it involves additional work for them.  If you company does not want to go through the process of being able to withhold for your state, then you can make estimated payments during the year to your state.

[Critter-3]

Be happy they take out MA taxes since you need to file a resident MA return and they tax you on all your income no matter where you earn it.  You are lucky that you don't also have to pay FL. 

[TomD8]

If your employer does not withhold MA taxes for you, you should begin making quarterly estimated tax payments to MA.  Note that estimated tax payments are required by MA if your taxable income exceeds $400. This web reference gives the details:

https://www.mass.gov/info-details/dor-estimated-tax-payments

Since you live in and work in MA, if the case arose you would apply for unemployment compensation in MA.

As @Critter-3 pointed out, as an MA resident ALL your income is taxable by MA, regardless of its source.

[Jpitts10]

@TomD8 thank you for your reply. I have been paying my MA state taxes but it would be helpful to have them taken out. So okay, here is the deal... a little curve ball if you happen to know this info as well.

*I have been laid off from this job back in May 2020 and I'm stuck in an unemployment dilemma, now. When I applied for UI in MA, they did not recognize my employer and did not see my wages from 2018-2020 which I was in turn denied. Since being denied, they put me through to PUA in MA and I was able to collect there. Now fast forward to March 2021, I was sent a fact finding for Employment Substantiation with I submitted everything proving I was a mass resident, working from home in mass the entire time I was employed and through the pandemic. I was found eligible. 5 days after that, I received another notice stating I was NOT eligible because they found wages that would qualify me for regular UI compensation. I now am so lost and really don't know what avenue to take. I'm petrified of owing thousands like I've seen happen to many people through this VERY MESSED UP system. Any knowledge or advice on this would be amazing. 

I thought anytime an employer hired an out of state remote employee, they were required to register that employee's state for SUTA tax and pay into it for this reason, but again... I have no clue anymore. 

[TomD8]

@Jpitts10 --

Sorry, this is an income tax forum, and unfortunately we are not equipped to help with questions of UC eligibility and state unemployment laws.  You may want to consult a local attorney who deals with those issues.  We would not want to give you incorrect advice.

[Jpitts10]

@TomD8 understood. Thank you again for your help!