Work and Live in different states
Q. Why does my company withhold both New Jersey and New York taxes from my paycheck. I used to work in New York but don’t any longer. I now work in New Jersey only. I have always lived in NJ. What forms to I use to make sure that NY taxes are not withheld from my earning?
A. There is a link on the side of my blog under the “Forms” heading for State W4 Forms. That page contains all withholding certificates that may be required by states. In your case, you simply need to notify your payroll department representative that a change in residency has taken place. If you live and work in New Jersey, the notification takes place by submitting a form NJ-W4, which you will see on the above mentioned page, to your employer. This tells your employer to withhold New Jersey tax only. Your employer may not implement the change right away. Most states have a time limit requirement on how late you can report a change. You have probably passed that time unfortunately. On a side note, because of the residency change, you should also complete a new federal W-4 with the correct address.
As for the New York tax that has been withheld incorrectly to date, you will need to file a tax return at the end of the year to request a refund. You will need to prove when your New York residency ended in order to actually qualify for a refund. Check with your CPA or tax preparer for the proper steps to follow in this case.
Who’s responsibility was it to report the change in work location? Was a manager supposed to report this to your employer which would then prompt the payroll department to contact you for updated withholding forms. The moral of the story is…tell your payroll department as soon as your work location changes even if it is your supervisor’s responsibility. When you delay, payroll cannot read minds, and will continue withholding as if nothing changed.
Tags: multi-state, Payroll, paystub, relocation, w4, withholding forms
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