How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Marsha411JD Your Own Question
Marsha411JD
Marsha411JD, Lawyer
Category: Employment Law
Satisfied Customers: 19780
Experience:  Licensed Attorney with 29 yrs. exp in Employment Law
19127644
Type Your Employment Law Question Here...
Marsha411JD is online now
A new question is answered every 9 seconds

Hello Im a contract nurse from

This answer was rated:

Hello I'm a contract nurse from Alabama, doing a contract & physically working in Texas, and going through a job placement service from AZ. I have been working got this company for 3 months now. No AZ state taxes was ever mentioned nor any taken out. My last paycheck the company all of a sudden started taken AZ state taxes out. Below is my list of concerns. 1. No state with holding was ever officially filled out by me or signed. 2. No notification was ever given to me prior of starting such deductions. 3. Concentric has been operating in AZ for some time now and should already know the state tax laws. 4. No previous taxes were taken out on previous paychecks paid to me putting me at risk of tax violation codes. Who is now responsible for these taxes since none of the above had previously been completed? Gary XXXXX

Hello,

Thank you for the information and your question. Although I can certainly understand your surprise and frustration with this new turn of events, there is nothing unlawful per se in what your Service is doing. There is no requirement that an employee fill out State withholding paperwork before an employer may withhold personal income taxes to pay to a particular State. In fact, the employer is under a legal mandate to withhold. Additionally, the withholding of taxes is not something that an employer must give notice of. That said, there is an exemption form that you can fill out and submit to your employer and then they should stop the withholding.

I can agree that an employer should know the tax laws, however, not knowing in this case does not create any liability on their part. The truth though is that since you have no contacts with Arizona, you will be able to fill out a tax form for the State at the end of the year and receive a complete refund of the taxes withheld. In other words, you don't owe those taxes since you are not working in Arizona, but you do have to jump through an extra hoop at the end of the year to get a refund. That means that there would be no tax violation issues for you as a result of the company just now starting to take withholding.

My guess is that they have a new tax accountant or business manager who, for whatever reason, is under the impression that they must withhold from all employees regardless of where the worker works or perhaps because they did not find an exemption form in your file started withholding since the law requires they do without the exemption. So, there is no doubt that the employer is not handling this properly. However, the fix is to provide them with the exemption form and then to file a tax form with the state at the end of the year to get a refund.

You can see the Arizona tax information by going to: http://www.azdor.gov/Business/WithholdingTax.aspx

Please let me know if you need any clarification. I would be glad to assist you further if I can.
Marsha411JD and other Employment Law Specialists are ready to help you
Customer: replied 3 years ago.
Would you please send my question with your reply back in an email to my email [email protected]

Thanks

Gary
Hello again Gary--I don't work directly for the Site, so I have no control over where an answer goes after I respond. However, I can forward your request to customer service. I can also tell you that if you look at the question (the lower right hand corner) you will see a rectangle with a + sign (near the eyeball). If you click on that, you can see that you can print, email, twitter, etc. the page.

Related Employment Law Questions