Reciprocal agreements and courtesy withholding

Reciprocal agreements between states allow employees that work in one state but live in another to only pay income taxes to their state of residency (home state).

If reciprocity exists between the two states, employees will need to complete and deliver a non-residency certificate to you in order to have residency state tax withheld instead of the work state tax.

Important reminder

While reciprocity is determined by an employee's home address and pertains to their income tax withheld, unemployment liability is typically determined by an employee's work address.  

Before registering for unemployment tax in a new state, please reach out to an accountant or the applicable state agency for determination of liability.