Working in DC

[Corduroy Frog]

A Client of mine is considering accepting a contract opportunity in Washington DC.  This is not the beltline, MD, or VA, it is DC proper.

I would like to ask this group what to expect in the area of difficulty.  Applies to taxing authorities, regulators, enforcement, etc.  There is a cost of compliance involved, and the cost can vary greatly from state to state.  Example:  Louisiana low cost, California high cost.

Comments are welcome from those who have experience there.

 

 

[Catherine]

Lots of people go work in DC for very limited times, and are considered non-resident guest workers not subject to DC income tax. However, any tax withheld they want refunded is mail-in forms only - they don't make it easy to get refunds. The Tax Book or QuickFinder may have details for you. I have one lady who works in DC for a week every year, they withhold like $50 in tax and she can't be bothered to reclaim it by mail.

[Corduroy Frog]

Thank you Catherine for the heads up.  Limited time employees are not subject to tax, but the employer will need to withhold taxes anyway - is that correct, or is there a way around that? 

And then it may be hardly worth the trouble for employees to get refunds.  At least we know somewhat of what to expect.  Thanks.

 

[Catherine]

Not sure if employer is required, or if employee has to fill out a form saying they are exempt.