Legal Question in Employment Law in Pennsylvania

Re: State Taxes

Although this relates to employment, it really is a tax question. If there is a tax section on law.guru, please post it there.

Also, you can call the state tax authorities in MD and Pa. to get the correct, current info straight from the horse's mouth. For MD, check out http://www.comp.state.md.us/. For Pa., http://www.revenue.state.pa.us/.

Generally, you pay taxes to the state you live in (they are deducted from your paycheck just as if you work and live in the same state), but there may be state laws in the state where you work which impact the taxes, so please consult the proper authorities as described above.

Best of luck.

Jeff Sheldon

Jeffrey L. Sheldon, Esquire

The Sheldon Law Firm

6932 Mayfair Road

Laurel, MD 20707

301.604.2497

fax: 301.776.3954

[email protected]

http://www.SheldonLawFirm.com

Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.

Re: State Taxes

State income taxes are generally with held against your gross pay based upon the income tax assessment that applies to the state in which you live. The state in which you "live" is somewhat of a misnomer in that you owe taxes to a state based upon "domicile". Domicile is defined as "where you intend to live". Domicile matters may involve a tax split or allocation between the States. This may present a complicated matter with determining your tax situation and filing of your returns.

Your company should possess the ability to address the matter where domicile issues are not present. That is, the employer is required to apply the appropriate withholdings against your pay. Where a domicile matter applies you need to speak to a tax accountant or attorney who has a tax practice.

If the company is not able to assist you then you may need the assistance of an attorney to clarify the respective responsibilities. If you should require assistance with this matter, I am available at a reasonable fee or, alteratively, I can refer you to a tax professional.

The essential issue is to ensure that your with holdings are proper and that you do not have an inter-state tax liability issue where you are waiting for a refund from one state for amounts withheld and have to pay for taxes to another state where taxes were not withheld.

Contact me should you require assistance.

G. Joseph Holthaus

(410) 799-9002