#multi-state-tax
Multi-state tax compliance, nexus rules, and withholding requirements for businesses operating across state lines
Hawaii has no sales tax — the GET taxes your gross receipts at 4.5% including county surcharges, and 4.712% is the most you may legally show a customer.
Local payroll tax is the employer's liability, not the software's. Ohio's 20-day rule, Pennsylvania PSD codes, NYC resident-only tax and Yonkers' 0.5% levy.
Thirty-eight states exempt manufacturing machinery from sales tax, but the break works through exemption certificates you hand vendors, not automatic refunds. Alabama, Hawaii, Kentucky, Mississippi, Nevada, New Mexico, and the Dakotas tax equipment in full or at reduced rates, while repair parts, utilities, and missing paperwork trip up makers everywhere.
Oil and gas lease bonuses, delay rentals, and royalties are all ordinary income reported on Schedule E — but royalties qualify for 15% percentage depletion that can continue after your basis hits zero. How each payment is taxed, where it goes on your return, and the state traps to avoid.
Missouri's SALT Parity Act lets partnerships and S corps pay tax at the 4.7% top individual rate on Form MO-PTE, moving the deduction past the federal SALT cap. Here are the 2026 rules, deadlines, and filing traps.
Three ways to move an LLC across state lines — domestication keeps your EIN, contracts, and tax elections when both states allow it; foreign qualification suits businesses staying active in both states; dissolve-and-reform means a new EIN and a new S election — plus a 7-item tax and paperwork checklist for the transition year.
Every U.S. employer must report each new hire and qualifying rehire to a State Directory of New Hires within 20 days of the first day of paid work, and electronic filers may batch reports 12 to 16 days apart. This guide covers the six required data points, the one-state designation that lets multistate employers file to a single directory, California and New York independent-contractor reporting rules, and the federal penalty cap of $25 per unreported employee rising to $500 for collusion.
An asset purchase does not automatically leave the seller's unpaid state taxes behind. State bulk sale statutes make the buyer liable unless notice is filed before payment or possession — New York requires Form AU-196.10 by registered mail 10 days ahead, California requires a CDTFA clearance certificate rather than escrow alone, and Illinois and Pennsylvania extend successor liability to income taxes. Here are the clearance rules, the non-tax liabilities that ride along, and a seven-step checklist to run before closing.
Whether shipping is taxable depends on the destination state, the taxability of the items, who billed the delivery, and whether the customer could avoid the charge. This guide covers the five questions that control the answer, the main state-rule patterns in New York, Texas, California, Florida, Illinois, and North Carolina, how to allocate delivery charges on mixed taxable and exempt orders, and a monthly checklist for defensible shipping-tax records.
Seventeen states run back-to-school sales tax holidays in summer 2026, from Florida's 32-day window to Iowa's Friday-Saturday weekend, each with its own price caps — $75 clothing in Ohio, $300 in Connecticut, $40 on Maryland backpacks. Participation is mandatory for most registered retailers, and destination sourcing means online sellers with nexus must honor the holiday of the delivery state.
The federal FLSA salary threshold for the white-collar exemptions is still $684 a week ($35,568 a year) in 2026 after the 2024 DOL rule was vacated and rescinded, but six states set higher floors - Washington $1,541.70/week, California $1,352.00, New York $1,275.00 in the NYC metro and $1,199.10 elsewhere, Colorado $1,057.69, Alaska $938.40, and Maine $871.16. The threshold that applies is the one for the state where the work is performed, and a failed classification exposes two years of unpaid overtime (three if willful) plus liquidated damages that double the recovery.
Congress restored the federal 1099-K threshold to $20,000 and 200 transactions in July 2025, but nine states still require a form at $600 and four more sit between $1,000 and $2,500 — so a $650 Etsy sale produces a 1099-K in Massachusetts and nothing in Texas. Includes the state-by-state threshold tiers and how to reconcile a gross form total down to actual taxable profit.
