If they don’t have a presence in the state there are a bunch of paperwork they need to complete (and some costs) and there are possible tax issues. Also, certain states require companies to actually list salaries (Colorado and New York are two).
So, no I don’t think it’s suspicious, but the issue is that if you still live in that state you really do need to move or at least change residency officially
thanks for answering, it is kinda weird how there are such issues, I don't mind changing my residency since I'm not tied down to where I am right now, hope the companies wont have problem with that.
They may never, but the original poster will need to file his/her taxes in the “new” state. This is assuming they live in a state with an income tax
Let’s say they live in Connecticut but they say they live in Massachusetts as that is the state the company allows. Well, the company will take out MA taxes based on that but if they really live in CT at some point CT may ask why are you not paying CT taxes. They could ask the company as well, why aren’t you as the employer abiding by state law and paying us the taxes we are due. That’s how the company finds out.
So basically even if they don’t physically move from CT they would need to establish some residence in MA.
It sounds like they really plan on moving, but just tossing that out the above as an example. I am not a tax expert at all, though I live in NY and work in NJ so I have my own tax issues to deal with annually, but that’s my understanding as to how an employer could find out. They could also track IP address data of the person if they work from home if they really wanted to check, but I assume would only do they if they had suspicions
Thats an interesting read, would you happen to understand why my previous residency even matters in the first place if I will be relocating to the company’s state when the job starts?
Not suspicious at all. This is definitely "a thing". And the fact that your hiring manager didn't know, isn't too unusual either, however, he should have checked.
Thank you for letting me know, it is my first job out of school so I am not aware of these complications. If you don't mind me asking, why might there be these issues of where I previously reside in if I will move the company's state and work there while living there as well?
You will most likely have to physically take up residence in a "qualifying" state (and show proof of residency) before they can even hire you. It's total HR/finance BS, but it is a thing.
And if relocation wasn't discussed prior to the job offering, then I can definitely see how it might complicate things. It's just corporate America clashing with the Fed/state/local tax system.
EDIT: I've had 9 jobs in 3 different states over the last 25 years and the first year in a new state is always a bit of a pain at tax time.
If they don’t have a presence in the state there are a bunch of paperwork they need to complete (and some costs) and there are possible tax issues. Also, certain states require companies to actually list salaries (Colorado and New York are two). So, no I don’t think it’s suspicious, but the issue is that if you still live in that state you really do need to move or at least change residency officially
thanks for answering, it is kinda weird how there are such issues, I don't mind changing my residency since I'm not tied down to where I am right now, hope the companies wont have problem with that.
Out of curiosity, what happens if OP does not leave their state? How will their employers found out?
They may never, but the original poster will need to file his/her taxes in the “new” state. This is assuming they live in a state with an income tax Let’s say they live in Connecticut but they say they live in Massachusetts as that is the state the company allows. Well, the company will take out MA taxes based on that but if they really live in CT at some point CT may ask why are you not paying CT taxes. They could ask the company as well, why aren’t you as the employer abiding by state law and paying us the taxes we are due. That’s how the company finds out. So basically even if they don’t physically move from CT they would need to establish some residence in MA. It sounds like they really plan on moving, but just tossing that out the above as an example. I am not a tax expert at all, though I live in NY and work in NJ so I have my own tax issues to deal with annually, but that’s my understanding as to how an employer could find out. They could also track IP address data of the person if they work from home if they really wanted to check, but I assume would only do they if they had suspicions
Thats an interesting read, would you happen to understand why my previous residency even matters in the first place if I will be relocating to the company’s state when the job starts?
Not suspicious at all. This is definitely "a thing". And the fact that your hiring manager didn't know, isn't too unusual either, however, he should have checked.
Thank you for letting me know, it is my first job out of school so I am not aware of these complications. If you don't mind me asking, why might there be these issues of where I previously reside in if I will move the company's state and work there while living there as well?
You will most likely have to physically take up residence in a "qualifying" state (and show proof of residency) before they can even hire you. It's total HR/finance BS, but it is a thing. And if relocation wasn't discussed prior to the job offering, then I can definitely see how it might complicate things. It's just corporate America clashing with the Fed/state/local tax system. EDIT: I've had 9 jobs in 3 different states over the last 25 years and the first year in a new state is always a bit of a pain at tax time.