I work for a hospital system that has me at 3 sites in 3 different cities. My primary site takes out my local tax of that city. Do I need to pay city taxes for the 2 cities of the other 2 sites?
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Not the correct legal answer. Practical answer is --------
City taxes are usually a fixed rate and the withholding and payment handled by the employer. Some don't even require a tax return. I would ask the question to the HR/PR people. "Please give me a letter indemnifying me!" That should get them moving. I doubt a city would go after individual employees of a hospital.
Short answer, not your problem.
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Really depends on where you live and any reciprocal agreements between counties. What I’m seeing is an employer who may be under/overwithholding and I would be more nervous as the employer than the employee. However, yes, Tim, I know of municipalities who have chased down doctors to get their back taxes on 1099 income and it could potentially happen for W2 employees. Over a period of years, this can add up to a significant amount, then penalties and interest, especially going after a big fat group of high-pd employees…
Maybe ask if you could get a written statement from the hospital’s CPA firm or a reference to the particular ordinance addressing who is liable for what municipality taxes.
Not trying to be a fear-monger but local and state govt’s are simply the worst arbiters of stringent and outlandish rules & regs.Our passion is protecting clients and others from predatory and ignorant advisors. Fox & Co CPAs, Fox & Co Wealth Mgmt. 270-247-6087
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