I let my not-for-profit employer in Virginia know I was moving to Pennsylvania, and not until AFTER I moved did they tell me it was not an approved state for reciprocity. Why would they not allow an existing reciprocal state?
-
1Surprise moving as a remote employee is a great way to get let go. It's a nontrivial amount of effort for your HR department to deal with the rules of a new state, and they might decide that you are not worth the effort. To anyone else considering a move (and working remotely), get it cleared first!– JasonBCommented Feb 23 at 18:26
Add a comment
|
2 Answers
When companies talk about reciprocity they focus on a couple of areas:
Taxes. They need to know which state they have to send the state tax money to, and how much needs to be withheld. There is tax reciprocity between PA and VA. That means if you live in PA and work in VA, then Virginia taxes don't have to be withheld. They will have to setup an account with the PA tax office.
Employment rules. Each state decides right-to-work, at-will, sick leave, vacation, and many other things. The company has to be aware of the differences, though this generally only applies to different work locations. If you are working remote, they need to know where, so they are following the appropriate rules.
The third area is insurance. The insurance provided by the company may be connected to a local list of medical providers. If you live two states away you may dis cover that all your favorite doctors are out of network, which can drive your insurance costs through the roof.
All of these things take time to get configured. In the case of a small business the move to another state can involve significant changes and costs.
answered Feb 21 at 21:26
-
Yup, clearly they can do it, but might not want the bother of dealing with yet another tax entity (PA). Commented Feb 22 at 13:49
Curious given that Virginia states:
Virginia has reciprocity with several other states. This allows Virginia residents who have a limited presence in those states to be taxed only by Virginia. Likewise, residents of the other states who have a limited presence in Virginia are taxed only by their home states.
and:
Maryland, Pennsylvania, or West Virginia Residents who:
Are taxed in your home state, and Are present in Virginia for 183 days or less during the year, and Do not maintain an abode, such as a house or apartment, in Virginia, and Receive only wage or salary income in Virginia. If you are exempt from Virginia income tax, complete the Form VA-4 and give it to your employer.
Find a VA-4 form (linked on the page given) and see what they say.
