Question

State payroll tax withholding

Forum|Forum|1 year ago
May 29, 2024
1 reply
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Employee works in Kentucky, lives in Illinois a reciprocal state.

How do you enter this in their payroll tax withholdings ?

Multiple States

if they filed form Kentucky 42A809 with their employer, only Illinois withholding should have been taken.

the IL-941 should be filed to reflect the Illinois wages and withholding. on their w-2 the state portion wouls only show Illinois amounts.

if they didn't then likely they would have to be treated as a Kentucky resident for withholding purposes.

T

TomD8

Here's a link to the Kentucky form @Mike9241 referred to. You must file this form with your KY employer to prevent KY taxes from being withheld from your pay.

42A809 (ky.gov)

Your employer may or may not be willing to withhold Illinois taxes for you. If Illinois taxes are not withheld from your pay, then you must make quarterly estimated tax payments to Illinois to prevent penalties from being imposed.

**Answers are correct to the best of my ability but do not constitute tax or legal advice.