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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4667
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I am an independent consultant and I set up my company as an

Customer Question

I am an independent consultant and I set up my company as an s Corp registered in Delaware. The company has been in existence for 30 days. The mailing address for my company is in NJ because I live in NJ, but all of my work is performed onsite in NYC. How do handle my taxes for the income earned? I am hiring ADP to withhold and pay federal and state taxes, I but want to be sure the right types and amounts (i.e., FICA, unemployment tax for either NJ or NY or both) are paid and I avoid paying double taxes. I have no employees and I'm the only one earning income in the company. Any help will be greatly appreciated. Thx!
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.

Hi from Just Answer. I'm PDtax. I'll assist.

Expert:  PDtax replied 1 year ago.

You will need to become an employee and set up withholding in NJ. You will also want to have NYC wage tax withheld regardless of being a NJ resident.

The s corp income (after wages) will be taxable to you in the state/city of operation, which will be NY and NYC. That income will be taxable on your personal NJ return, and subject to resident tax credits against your NJ income.

Since your S corp was in operation in 2015, you may need to file a short period return for the business. Best to review your operations, revenues/expenses with a tax pro who can advise if and how to file the short period return.

Hope that covers everything. Positive feedback is appreciated. I'm PDtax.