Working Remotely: Difference between revisions
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==Other State Taxes== | ==Other State Taxes== | ||
There are some special cases which vary by state. | There are some special cases which vary by state. | ||
Washington: Washington State's Long Term Care tax, which begins automatically deducting from employee paychecks on July 1st, 2023. Remote workers based in states other than Washington who work for a Washington-based company may apply for an exemption under [https://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Session%20Laws/House/1733-S.SL.pdf?q=20220217172512 HB 1733]. Contractors are automatically exempted. | Washington: Washington State's Long Term Care tax, which begins automatically deducting from employee paychecks on July 1st, 2023. Remote workers based in states other than Washington who work for a Washington-based company may apply for an exemption under [https://lawfilesext.leg.wa.gov/biennium/2021-22/Pdf/Bills/Session%20Laws/House/1733-S.SL.pdf?q=20220217172512 HB 1733]. Contractors are automatically exempted. | ||
==Sales Taxes== | ==Sales Taxes== | ||
Some online business platforms such as EBay may not collect sales taxes but instead obligate you as a seller to collect and pay them. New Hampshire has no sales taxes, so this should not affect your NH-based home business. Unfortunately, you will be required to track expenses and sales and calculate profit in order to pay federal income tax as usual. | Some online business platforms such as EBay may not collect sales taxes but instead obligate you as a seller to collect and pay them. New Hampshire has no sales taxes, so this should not affect your NH-based home business. Unfortunately, you will be required to track expenses and sales and calculate profit in order to pay federal income tax as usual. | ||
Revision as of 23:32, 2 July 2022
New Hampshire affords great advantages for remote workers. Working remotely enables an employee to live in a cheaper area of the state while making a comparably higher income for that locale and work in an industry not physically available to that locale.
State Income Taxes
In the event that an employee works remotely for the entire year in New Hampshire for a company based in a state which doesn't have a convenience tax rule (Connecticut, Delaware, Nebraska, New York, and Pennsylvania), you can expect to avoid all income taxes. If you do work for one of the five convenience states, you can expect to pay income taxes to that state.
Other State Taxes
There are some special cases which vary by state.
Washington: Washington State's Long Term Care tax, which begins automatically deducting from employee paychecks on July 1st, 2023. Remote workers based in states other than Washington who work for a Washington-based company may apply for an exemption under HB 1733. Contractors are automatically exempted.
Sales Taxes
Some online business platforms such as EBay may not collect sales taxes but instead obligate you as a seller to collect and pay them. New Hampshire has no sales taxes, so this should not affect your NH-based home business. Unfortunately, you will be required to track expenses and sales and calculate profit in order to pay federal income tax as usual.
