De And Nj/pa State Taxes

[Tierney]

s About Taxes)/DE and NJ/PA State Taxes Advertisement Expert: John Stancil, CPA - 8/22/2008 I have a business that just opened in Delaware. I have employees that work for me in DE that live in NJ and PA. Am I required to withhold Delaware state taxes and the state they live in? If not, what happens when they complete their tax return?

[Jethro]

Mark,

Thanks for your question.

Your employees will owe DE tax since that is where the money is earned.  They will also owe tax to their state of residence.  However, their state of residence will grant them a credit for the tax paid to DE.

Your responsibility for state taxes is to withhold for DE.  It is their responsibility to make payment for the other states if needed.

Hope this helps.

John Stancil, CPA