Sage 100

Have client in Iowa that has an employee living in Illinois.  In legacy PR, you choose what state to use for SUI.  Appears to have changed in the new framework.  So how do you handle this specifically?

From what I am seeing, you create a tax location for Illinois which has both Iowa and Illinois tax groups.  Charge state tax in Illinois and SUI in Iowa.

Would appreciate your feed back on this thought.

TIA




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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
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You have the right idea if your goal is to do unemployment in IA and income tax for Illinois.

However, if the employer has no presence in Illinois are they really required to withhold Illinois income tax?

I would think that they would have still have to have withholding for IA?

Forgive me if I don't have that quite right.  I'm in Washington state that has no income tax so I'm not entirely sure what the tax requirements withholding requirements are when the business and the resident states both have income tax.  I do know if I have an Idaho employer with a Washington resident employer, they have to do Idaho income tax withholding.

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Thomas Rogers (TomTarget)
Target System Technology, Inc.
Spokane Valley WA
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In the Midwest they do a lot of reciprocal withholding.  If I am a MI Employer with an Indiana employee, I can either withhold Michigan (and the employee will have to file MI and request a refund, and then turn around and apply it all towards their IN taxes), or I can be nice and withhold Indiana for them.

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Beth Bowers
Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
Beth Bowers
269-445-1625
------------------------------

Original Message:
Sent: 07-16-2019 19:12
From: Thomas Rogers
Subject: v2019.3 PR State Unemployement

You have the right idea if your goal is to do unemployment in IA and income tax for Illinois.

However, if the employer has no presence in Illinois are they really required to withhold Illinois income tax?

I would think that they would have still have to have withholding for IA?

Forgive me if I don't have that quite right.  I'm in Washington state that has no income tax so I'm not entirely sure what the tax requirements withholding requirements are when the business and the resident states both have income tax.  I do know if I have an Idaho employer with a Washington resident employer, they have to do Idaho income tax withholding.

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Thomas Rogers (TomTarget)
Target System Technology, Inc.
Spokane Valley WA
------------------------------

@Thomas Rogers - Today I just want to get v2019 PR set up the way v2017 worked.  For many of my clients, if they have out of state employees, they will withhold and report for the other state.  As @Beth Bowers indicated, it is the nice thing to do.   Appreciate the encouragement that I am headed down the correct yellow brick road.  Just discovered today that client did not install the 2019 TTU back in January.  Made a BIG difference in FIT and SIT withholdings.​​

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Jeff Schwenk
FORMER 90M Board Member
Bottomline Software, Inc.
Waynesboro VA
540-221-4444
------------------------------

Original Message:
Sent: 07-16-2019 19:31
From: Beth Bowers
Subject: v2019.3 PR State Unemployement

In the Midwest they do a lot of reciprocal withholding.  If I am a MI Employer with an Indiana employee, I can either withhold Michigan (and the employee will have to file MI and request a refund, and then turn around and apply it all towards their IN taxes), or I can be nice and withhold Indiana for them.

------------------------------
Beth Bowers
Mom to Samson, Peanut, ChiChi, Canton, Cagney and Daisy (NO Oxford comma - shriek!)
Beth Bowers
269-445-1625
------------------------------


Original Message:
Sent: 07-16-2019 19:12
From: Thomas Rogers
Subject: v2019.3 PR State Unemployement

You have the right idea if your goal is to do unemployment in IA and income tax for Illinois.

However, if the employer has no presence in Illinois are they really required to withhold Illinois income tax?

I would think that they would have still have to have withholding for IA?

Forgive me if I don't have that quite right.  I'm in Washington state that has no income tax so I'm not entirely sure what the tax requirements withholding requirements are when the business and the resident states both have income tax.  I do know if I have an Idaho employer with a Washington resident employer, they have to do Idaho income tax withholding.

------------------------------
Thomas Rogers (TomTarget)
Target System Technology, Inc.
Spokane Valley WA