If my corp. is in NV and I want to pay an employee who lives in GA, do we both pay taxes in both states?

I have heard that my out-of-Nevada employee would have to pay state income tax to both Nevada and Georgia if they earned a regular paycheck. Is that true? Is there a way to just pay the Georgia tax without filing a lot of paperwork?

Public Comments

1. My opinion is that you pay tax in the state you live in, not both...for ex...fl doesn't have state tax, so if you work in Ga and pay into state tax, you get a refund in fl.....pay your employee on a 1099 whihc you report and they report it as an independant contractor.....but they must pay self employ tax..easiest way to do it...be sure they know they have to pay the tax this way otherwise. come tax time they will owe money.
2. You pay the taxes in which the employee resides not works. You do not have to pay taxes in 2 states. As far as paperwork I don't know, check with an accountant.
3. Your employee in GA will not owe any NV income tax. Your employee has no power over where his employer incorporates or does business. Personal income tax is based on residency and where the income is earned. So no paperwork at all!!! However, if this person is generating income for you in GA, it will create "nexus" in Georgia and your business will have to pay corporate taxes there. I would suggest you spend some money here and consult with a tax professional first.