• QualifiedKitten@lemmy.world
      link
      fedilink
      English
      arrow-up
      2
      ·
      3 months ago

      Well, there’s no income tax in Washington, but I think technically you’re supposed to pay based on where you physically work. So, if he’s only working 3/5 days in Washington, that’s only 60% of his salary that falls under Washington’s rules.

      • Fermion@feddit.nl
        link
        fedilink
        arrow-up
        7
        ·
        edit-2
        3 months ago

        That’s not how it works. What matters is the state of your residency and the state that your paychecks come from. If you get paid in a state you don’t reside in, you have to file in both, unless there’s a reciprosity agreement. Many states will allow deductions for income tax paid in another state. So for example if the state your employer is in has a 4% rate, and the state you reside in has a 6% rate, then you’d end up paying 4% to state A and 2% to state B. It is possible to get double taxed depending on which states are involved.

        So the CEO will at the very least have to file in California.

        • QualifiedKitten@lemmy.world
          link
          fedilink
          arrow-up
          2
          ·
          3 months ago

          I’m pretty sure that you’re talking about applies when an employee lives in one state full time, but receives a paycheck from a company in a different state. They may live near the state line and commute across the border, or they may be fully remote, but either way, their work is consistently happening in the same location.

          In this case, he’s working part time in California, and part time in Washington. The exact laws vary by state… in some states, your tax liability begins on the day you start working there, while others have a certain threshold, but I’m pretty sure he’s crossing whatever threshold there might be. So for the days that he’s working in Washington for a company based in Washington, Washington income taxes apply, and for the days he works from California, California income taxes apply.

          Since Washington doesn’t have an income tax, and California does, he will still definitely have to file in California.

    • Neuromancer@lemm.ee
      link
      fedilink
      arrow-up
      1
      ·
      3 months ago

      Both. He’d pay 3 days of Washington taxes which is zero. He’d pay two for California.