Ma vs Nh Unemployment taxes to be paid

[Stefanie S]

I have 1 employee: Lives in Ma and works in NH.   We have been taking Ma w/h out and paying to MA SUI.  I am now finding that we should have been paying SUI to NH.   We are also finding that we owe back payments for MA Paid Family due to they having us paying MA SUI.   How should this be handled? Am i to leave as is and pay the MA Paid Family or do wage adjustment to get refund from MA SUI?

Employee 2: 95% works remotely and lives in MA, but employer is in NH.   Do we keep him in MA or move to NH SUI and MA w/h?

What are the requirements for this?  I keep getting conflicting answers, so not sure what is the correct way to handle this.

Thank you.

[AliciaP1]

As an employer, you are responsible for collecting and paying taxes for the state in which your remote workers live.  So, in your case, you should be withholding MA income taxes as well as paying MA SUI.  This means you do owe the MA Paid Family Leave as well.

[Stefanie S]

Hi Thank you.  What about the employee who is not remote?  I have both in office and remote.

Thanks for you insight.

[AliciaP1]

Your work in-office but live in another state workers should have their home state taxes withheld, but office state unemployment paid.  So, again in your case, an employee who works in the office in NH but lives in MA would have MA state income tax withheld and NH SUI paid.  This worker would not be subject to the MA Paid Family Leave.

@Stefanie S