Can Anyone Help Us Answer This Tax Question About an Employee in Another State?

I'm confused by the question. What state was the employee working in since it seems it wasn't the state the employer is located in. The employer should have been taking out state taxes for the state the employee worked in and reporting the income to the unemployment department in the state worked in. If the employee moved to another state where they applied for unemployment that state should, as someone else noted, contacted the worked in to determine the amount per week the employee is entitled to. If the employer wasn't properly reporting to all the government agency then the employer will need to do a W-2C and report the taxes taken out to the correct state.

You can appeal and ask why he is not getting benefit in his home state. But he can probably apply for benefits in his home state or where you are located even if you did not pay to that state. Where he withheld income tax and where he applies for unemployment benefits are two different things.

I do not think he can apply in Ohio. But they might offset each other so he can apply in Ohio. I am not really up on taxes. They change from day to day. Sorry wish Zi could help you. But if I can not get you a real answer I pass on helping. Better off for you and me both.

Have a great day!

Jeff Cattan

As long as the ex-employee is not doing it for fraudulent reasons than yes the ex-employee can apply for benefits in another state.

I think people are giving the right answer but if your question is "why this is allowed" then the answer is the US Constitution.

Its a hard concept for some to get comfortable with but states may not pass laws that treat out of state citizens different then native citizens, (with a few exceptions) or stop out of stated citizens from becoming permanent residents of the new state. The courts have issues with laws that inhibit freedom to travel within the US. This is actually cover in Article 4 of the US Constitution, Privileges and Immunities Clause. A good application of this can be found in Saenz v. Roe 526 U.S. 489 (1999).

My understanding is that he can apply under any jurisdiction where he worked. But, he cannot be drawing benefits in one state while working in another. So if he's working for you now, he cannot be drawing in Ohio. But, if you laid him off and he had better available benefits in Ohio, he can draw there.

I don't really understand your question so I'll frame my answer around what I believe you're asking.

Ex-employee worked in one state in which you paid unemployment taxes while he or she worked for you. He or she moves to another state then files or wants to file for unemployment benefits. Where should he or she file for the unemployment benefits? Answer: Have him or her file in the state where he did work.

Ed - If you work in one state and live in another, you must file your claim for unemployment benefits with the state where you worked. Your claim will be subject to that state's rules and benefit limits. An out-of-state unemployment claim is known as an interstate claim. Fortunately, you don't have to travel back to your state of employment to file the claim. You can file online, by telephone, or at the nearest unemployment office in the state where you now live.

People receive unemployment from the fund in the state where they worked, not lived.

Hi Ed, if you still looking for further information and details, I can connect you with my partner specialist in the industry. Let me know! Thank you

You should have been paying Unemployment taxes in the state he worked. That's the state he would apply for unemployment. If you did not pay the unemployment taxes in that state, you may need to request a refund from Ohio, then report and pay the taxes in the state he worked for ALL the quarters that wages were paid to the employee. You will likely also have to pay for late filing fees and penalties to that state. If you used a payroll company, they should have known this, and you should hold them accountable for the correct filings and payment.