Multistate taxation is a challenge for payroll professionals. Taxation professionals need to be very circumspect in dealing with it.
The reason for this is not difficult to seek. The term itself says it all. Although we have a uniform Federal taxation on some items; there are several others which vary from one state to another. This makes the knowledge of the structure of taxation in each state a payroll professional's elementary functions.
What complicates the matter is that in relation to three important aspects of multistate taxation; rules vary from one state to another:
The payroll professional has to be aware of several aspects of multistate taxation such as: