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Unemployment claims

Mortgage
Mortgage ✭✭
edited November 2010 in International Issues
The foreign employees and all set up for unemployment in New York state regardless of what state they are originally from. If the US citizen working abroad have to claim unemployment from NY how does that affect what's reported on their W-2. There are no state wages reported for these individual. Would this open them up to any NY tax burden?

Thanks
As

Comments

  • If that's where they're getting their direction from, that is the proper state to be reporting wages to for unemployment. Should have nothing to do with their W-2. I used to work for an international drilling company and we had no problems with unemployment when claims were filed.

    Are these all resident-based employees?
  • These are U.S citizens working abroad. They are paid from our NY office but their original home residence could be any state. When we pay them, no state or federal taxes are withheld. My question is, If they are terminated would they have to apply for unemployment from NY since the state in which they live would not have any wages reported for them? Not sure how that works.

    Any help would be appreciated.

    Thanks.
  • I responded as advised by my in-house tax department. Reported the wages to the state from which they received their direction.

    Now, I do agree that because this is NY, you're probably going to have to answer, every year, where are the state income taxes for NY (from the state) and the state may be hitting up the employees, asking where is their NYS income tax return. This would not be a problem in ANY state except NY.
  • Thanks all for your input.
    Based on what I am hearing and based on the circumstance of one particular individual who returned from Iraq, had not worked upon her return but went on disability and was then terminated after the disability was over. This could or could not be a case for unemployment. The state has no wages reported except for those the employee received while on disability. I would see if washington State would want to pay unemployment. I agree this is a bit legally complicated

    Thanks all.