Determination engine

Which state do you actually withhold in?

Reciprocity, convenience-of-the-employer, nonresident thresholds and unemployment localization, applied together to one employee's facts. Every answer cites the state source it came from.

No state income tax withholding applies.
Neither jurisdiction imposes a wage income tax on this arrangement.
Income tax withheld to
None
No wage income tax applies to this combination.
Employee certificate
None required
No state withholding allowance certificate applies.
Unemployment insurance
Arizona
Localized under factor 1: Localization.
Reciprocal agreement
No
Arizona has agreements, but not with Nevada.
Below the Arizona nonresident threshold
Arizona does not require nonresident withholding until the employee exceeds 60 working days in the state. You entered 0. Arizona withholding is not required for a nonresident employee physically present in Arizona for fewer than 60 days in a calendar year for the purpose of performing a service benefitting the employer, where the employer is an Arizona business or a related entity with substantial Arizona ownership ties.
!
Track this, because it flips mid-year
Once the threshold is crossed, most states require withholding on all in-state wages for the year, not just the excess. Set an alert well before the limit.
Employer registrations you will need
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Withholding determination

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This is a determination aid, not advice. StateSide encodes published state rules and applies them mechanically to the facts you enter. It does not know your entity structure, your nexus history, your equity compensation, or the dozens of exceptions that turn a clean rule into a judgement call. Every determination cites the state source it came from — verify against that source, and take anything consequential to a payroll tax professional before you act on it.