As a result of COVID-19, employers are now empowered with a new work environment for employees. Many employers are now giving their employees the option to work from home. Also, employers are hiring across the country despite where the corporate headquarters or physical work locations are positioned. From a Payroll Tax prospective, employers may have to register for new state unemployment, state withholding and local income tax account numbers that are not currently set-up in that state or locality.
Registering for tax accounts can be very time consuming for any Payroll Department, especially if they have never registered in that jurisdiction. Each state and locality have their own nuances and registration processes. Employers will need to complete these for the employee that is working from home prior to the first pay date.
One of the most tedious payroll tax registrations to complete are local income tax accounts. There are over 4,000 taxing jurisdictions across 17 states. Depending on the state, local income taxes may be levied by county, municipality, school district, etc.
For example, there are over 2,500 municipalities and approximately 400 school districts that impose income or wage taxes in Pennsylvania and over 600 municipalities and approximately 200 school districts in Ohio.
Over the last several months, we have received requests from our clients to assist in these areas and we heard them loud and clear. As a result, Thomas & Company now offers State & Local Tax Account Registration Services! We have team members with 20+ years of experience in tax registrations and we would be happy to assist you!
If you are interested in Thomas & Company partnering with your team to provide these additional services, feel free to contact Jeremy Muchnick, our Director of Tax Recovery Services, at firstname.lastname@example.org.