With Poppins, we can only report to one state, which is the state where the work is being done.
Some states have reciprocity agreements which means that if an employee lives in one state but works in another, they can choose to pay income taxes directly to their state of residence. All other taxes must still be reported to the work state.
On our platform, the employee can choose either:
1) To be exempt from the work state income taxes. Then, during tax time, they would pay any state income taxes owed directly to their home state.
2) To contribute work state income tax and then at the end of the year, they would receive credit from their home state for work state taxes paid.
You can see if your state has a reciprocity agreement here.
If the state where your employee works does not have a reciprocity agreement, your employee must file forms and pay taxes in the state where the work is performed.
If the state where your employee works does not have a reciprocity agreement, your employee must file forms and pay taxes in the state where the work is performed.