Taxes with employees in Puerto Rico
by bethi, Window Shopper
- Created: January 3, 2011, 6:42 am
- Updated: January 31, 2011, 4:21 pm
In our new business that will be located here in NJ, we are considering hiring a family member as an employee over in Puerto Rico. How would this work with taxes? I know that the employee would pay taxes where he/she lives (in Puerto Rico) out of their pay, but how would this affect our taxes for the business here in NJ? Don't want to get stuck paying double tax and do we register this employee with the IRS in NJ or in Puerto Rico where they are located? Any insight or tips pertaining to having an employee out of state is much appreciated! Thanks!
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