Setting State Income Tax for Out of State Employees

Question

Good day everyone.  I have what I hope is a simple question regarding an out of state employee.  We are on the Netsuite platform and our business is located in California.  We have an employee who lives in, and performs his duties from Texas.  How do we set up his employee payroll file so CA State Income Tax is not taken out of his paycheck?  Thanks in advance for any info provided.

Amir Alinaghian-Oracle · Accepted Answer

Hello @justin sharp,

Here's what I've found so far:

* To set up an employee payroll file so that the CA State Income Tax is not taken out of the employee's paycheck, both the employee and their workplace should be located in Texas. 
* If the employee is working from home, you can create a workplace using their home address (in Texas) and assign the workplace to the employee record.

Hope this helps!

Kind regards,

@Amir Alinaghian-Oracle