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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 2043
Experience:  Certified Public Accountant
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I would like to work for an out of state employer. how can

Customer Question

I would like to work for an out of state employer.
JA: The accountant will know how to help. Please tell me more, so we can help you best.
Customer: how can we deal with MD State taxes without the employer needing to pay
JA: PayPal, Debitcard or credit card are all fine.
Customer: hello
JA: Hi. What is your issue regarding?
Customer: I live in MD. I would like to work for an out of state law firm. I would be telecommuting. They said there is an issue of the MD state taxes would the employer need to pay fines or fees to MD since I am a MD resident? Could I be exempt from payroll state tax withholdings and pay the state taxes myself?
JA: Is there anything else important you think the accountant should know?
Customer: they have employees in VA and already have payroll established in VA
Submitted: 8 months ago.
Category: Finance
Customer: replied 8 months ago.
Can I work for an out of State employer and pay my own state taxes so that the employer doesn't have to establish a tax ID in the state of MD?
Expert:  Mark Taylor replied 8 months ago.

Hi, my name is Mark. I will be happy to help you with your question. If your employer pays you as an employee they would need to set up a Maryland account for withholding purposes.

Expert:  Mark Taylor replied 8 months ago.

One possible solution would be fore you to create and LLC or S-Corporation. The out of state entity could pay the LLC or S-Corporation and would not be responsible for the Maryland withholding. Of course in this situation you would not be treated as an employee.

Customer: replied 8 months ago.
The employer is obligated to withhold state taxes? Could I submit an exemption certificate to my employer and then I pay the state taxes myself?
Expert:  Mark Taylor replied 8 months ago.

You could file as exempt and be responsible for making estimated payments. Your employer would still be required to get a Maryland withholding account and a Maryland unemployment tax account. The employer is not paying the Maryland taxes. They are withholding the taxes for your benefit.