An employee’s state of residency, and in some cases the city and/or county of residency, may significantly affect their employer’s withholding tax obligations. Given the expected increase in permanent remote work, residency complications may exacerbate an employer’s state withholding compliance burdens.

In this SALT@Work column for the November/December issue of Journal of Multistate Taxation and Incentives, Eversheds Sutherland Partner Charlie Kearns provides some common examples where employee residency can affect employer withholding, then addresses the extent of an employer’s obligations to document and/or verify an employee’s residency status for state withholding purposes.