Work location is incorrect on payroll

[vze56v6x]

i am starting a new job and the company made a mistake and put my work location as Texas instead of New Jersey where i reside. I will be working from home only.

i have already taken steps to correct the work location.

my question is what is the tax implication if this isn't corrected before i receive my first paycheck.

is the impact only to State taxes or federal as well?

is there something i can do to not have an impact at tax time or is it not a big deal?

thanks 

[xmasbaby0]

Not sure where your employer "put"  your work location. if you have not yet even received a pay check.   If you have not even received a pay check yet, you just need to make sure they are withholding state tax for NJ where you live and work.  TX has no state income tax so they would not withhold any tax for TX.   If the employer is based in TX and is unable/unwilling to withhold tax for NJ from your checks then you will want to start paying estimated tax to NJ yourself to avoid a big state tax bill at tax time.    Have a conversation with payroll to see if they can withhold NJ tax.

This is only July.  By the end of January you will receive a W-2, and you will want the employer to use your correct address on the W-2.   However, the state you live in has no effect on your federal tax liability.  When you prepare your tax return you will want to use your correct and current NJ address on the tax form.

[vze56v6x]

Work location for every job i have ever held is something always noted in the system. Payroll uses that when determining what taxes to withhold.

My current job work location in the system shows dallas texas and payroll already stated they use that for payroll. I have already taken steps to correct it but i am worried paycheck #1 will be messed up if this isnt resolved before my first check.

it sounds like worse case is the check would be missing state withholding for at least one pay check.

[rjs]

Having no state withholding on one paycheck is not a serious problem. It might mean you would get a smaller state refund or owe a small amount of state tax. But you do want to make sure that either they start withholding New Jersey tax or you start making quarterly estimated tax payments to New Jersey. Estimated tax for income that you earn in June, July, and August is due September 15.

Missing state withholding for one paycheck is not likely to affect your federal tax at all.