Out-of-State Income Tax Withholding
When a project hires an individual from another state to work in that state, the SR administrator is responsible for gathering the details of the job assignment and reporting them to human resources. Because SDSU Research Foundation employees working out-of-state are subject to state income taxes for the state in which they work, SDSU Research Foundation is responsible for the applicable withholding laws and remittance of the tax withheld, in addition to maintaining workers’ compensation and unemployment insurance coverage when appropriate. The payroll supervisor works with each state to obtain and complete the necessary forms, obtain the appropriate signatures, and complete the registration of SDSU Research Foundation as a business entity. The payroll system is then updated to accommodate new state withholding tables, workers’ compensation rates, and unemployment insurance rates.