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 BK-CPA Your Own Question
BK-CPA, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 933
Experience:  Owner of a CPA firm
Type Your Tax Question Here...
BK-CPA is online now
A new question is answered every 9 seconds

We are a California small business with an employee who moved

Resolved Question:

We are a California small business with an employee who moved to Seattle WA.
We do not have an office in WA and he works out of his home.
Do we have to pay unemployment insurance Workmen Comp in WA?
Do we withhold taxes in Cclifornia?
Submitted: 7 years ago.
Category: Tax
Expert:  BK-CPA replied 7 years ago.

It sounds like your employee may be working for you under more of a contract labor scenario, in which case you don't have to deal with payroll taxes etc., just issue a 1099 at year end. I would make the switch to contract labor upon the employee moving. Because the employee is both living in and working out of WA, you would withhold according to WA tax law and schedules, which is good, because WA has no personal or corporate income tax:



Here is a link to WA workers' comp requirements:



Here are the employments that are excluded from WA workers' comp:


Customer: replied 7 years ago.
Are there any other options for continuing having him work as a regular CA employee and pay Workmens comp in WA without having a corporation registered in WA?
Expert:  BK-CPA replied 7 years ago.

This stuff is black and white:


Even though your corporation was created in CA, you can end up owing income/payroll/property and other taxes where you establish nexus with different taxing authorities.


To be blunt, if you're going to have an employee working out of WA, you're going to have to adhere to WA laws. I did tell you that WA has no income tax, so that is good for you.


I'm sorry there isn't a correct answer that is going to tell you what you want to hear, but that is the answer. Thank you again for your question.

BK-CPA and other Tax Specialists are ready to help you