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MW58
Returning Member

Taxes for working remotely from Wisconsin for either New Jersey or Massachusetts

I am going to be working remotely from Wisconsin (for my convenience, not employer required).  My employer has given me the option to be employed out of either Massachusetts or New Jersey.  I see that during Covid shutdowns, Massachusetts enacted a Convenience of Employer law.  Does that mean if I did work out of Massachusetts, I would need to pay income tax to both Wisconsin (my state of residency) and Massachusetts (the state of my employer)...essentially meaning I am paying twice the income tax?  Should I opt to work out of New Jersey instead?

3 Replies
TomD8
Level 15

Taxes for working remotely from Wisconsin for either New Jersey or Massachusetts

Neither MA or NJ taxes non-resident remote workers.  (The MA Covid exception expired September 13, 2021.)  So from a state income tax perspective, it doesn't matter which state you pick.

 

As long as you never actually (physically) work within those states, your income is taxable only by your home state of Wisconsin.

 

If your work is going to be done 100% remotely from WI, be sure your employer withholds WI income tax from your pay.  Otherwise you'll have to make quarterly estimated tax payments to WI.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
rjs
Level 15
Level 15

Taxes for working remotely from Wisconsin for either New Jersey or Massachusetts

It's not clear what your employer means by your being employed "out of" Massachusetts or New Jersey. I sense that the employer might be confused about how to handle a remote employee who works in a state where they do not have an office. Since you are working in Wisconsin, your paychecks and your W-2 should not show any Massachusetts or New Jersey income, and there should be no tax withheld for either state. The employer's payroll records should not show you being in either state. If the employer wants to associate you with their Massachusetts or New Jersey location for some other internal recordkeeping purpose, that should have no effect on your paychecks or tax withholding, your W-2, or your tax return.


Having an employee in Wisconsin might have tax implications for the company. That is basically their problem, not yours. But it might affect whether they are able to withhold Wisconsin tax from your pay. If they don't, as TomD8 indicated, you will have to make estimated tax payments to Wisconsin.

 

MW58
Returning Member

Taxes for working remotely from Wisconsin for either New Jersey or Massachusetts

Thank you for the quick responses, this was very helpful!

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