2006-12-14 11:33:22 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Yes it is legal. You still have to pay your share of taxes, depending on his or her employment status, i.e. employee or independent contractor. But you can still take the compensation as a deduction.
Payroll taxes would be paid to your state only because the employee earned his compensation in your state. The employee would have to file two state returns for his personal income taxes is all.
2006-12-14 13:06:23 · answer #1 · answered by Anonymous · 1⤊ 0⤋
Yes, it is. The employee is responsible for filing taxes in both states. However, bordering states do have agreements with each other to determine which taxes should be taken out of an employees paycheck though. You shoudl check with each states department of revenue to find out.
2006-12-14 11:49:46 · answer #2 · answered by Steve 6 · 0⤊ 0⤋
Depends...is he on contract from employer ..need more info
2006-12-14 11:42:14 · answer #3 · answered by Michael I 3 · 0⤊ 0⤋
no i dont thaink to mybe but iam 11
2006-12-14 11:38:33 · answer #4 · answered by Matthew H 1 · 0⤊ 1⤋