Hi. If someone lives at Washington (no state tax) and works at home remotely for a California-based startup, does he/she need to pay the California tax? He/she work 100% remotely at Washington (no short-term assignment at California). Thanks!
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A non-resident of California who works remotely entirely outside California as a W-2 employee of a CA-based employer does NOT have to pay CA income tax.
A non-resident of California who works outside California as a self-employed sole proprietor and who provides services to a CA-based client DOES have to pay CA income tax on those earnings. A sole proprietor's compensation is reported on a 1099-NEC or 1099-MISC instead of a W-2.
Earnings from any work carried out inside CA is taxable by CA.
A non-resident of California who works remotely entirely outside California as a W-2 employee of a CA-based employer does NOT have to pay CA income tax.
A non-resident of California who works outside California as a self-employed sole proprietor and who provides services to a CA-based client DOES have to pay CA income tax on those earnings. A sole proprietor's compensation is reported on a 1099-NEC or 1099-MISC instead of a W-2.
Earnings from any work carried out inside CA is taxable by CA.
Noted! Thanks! 🙂
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