My client is based in Colorado, but has employees that work both based in Colorado and work in other states. The client also has non-Colorado employees working in other states. What determines which state withholding should be made?

ANSWER

The BIDaWIZ Team's Answer:

Generally speaking, taxes are withheld based on the location (tax nexus) or the state in which the work was performed. Therefore, employees working in states other than Colorado should have taxes withheld from those other states. As for independent contractors, generally most states don't require employers to withhold taxes. What states specifically are you referring to? Some states may require that the employer withhold independent contractor taxes.