Accepted Answer

In such a situation it is advisable for the employer to withhold the NJ state income tax for days services were performed in NJ. The employer will also withhold other state taxes based on the State where the services were performed by the employee.
Normally the employer is required to be registered in each of the State where the employee performs the services on a regular basis as the employee represents the employer in that State as an agent and hence, created a nexus for the employer.

The W-2 issued to the employee should allocate wages to different State based on the services perform in each of the these States.

So for the period services are performed in Fl, NJ state does not need to be withheld.

Note that the State tax withholding is not based on the residence of the employee. It is based on the State where the services are performed. Employer, may, as a courtesy withhold State tax for the employee based on their residence but they are not required to.

If the employee is performing from Ohio for his convenience than the employer can withhold NJ State tax on the wages and the employee may file for a refund in NJ and pay tax to Ohio.

Let me know if you have any question.

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases. Nothing contained in this reply was intended or written to be used, can be used by any taxpayer, or may be relied upon or used by any taxpayer for the purposes of avoiding penalties that may be imposed on the taxpayer under the Internal Revenue Code of 1986, as amended.

Expert:	RD
Pos. Feedback:	99.4 %
Accepts:
Answered:	10/24/2009

Certified Public Accountant (CPA)

CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..