Payroll Taxes- Which State?

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Hi,
There are 2 LLC companies, one operating and one holding. The operating LLC is in my home state (state A). The holding LLC is in another state(state B). The operating LLC will be paying a management fee to the holding LLC. The holding LLC has hired a manager in state A to run the operating LLC. Should state payroll taxes be paid to state A or state B?

Thanks for your help
 
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Dec 27, 2012
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I'm probably a little late on this, but generally you pay your payroll taxes in the state where the work is performed. However, it's more complicated than that because some states (particularly in the eastern U.S.) have reciprocity agreements.
 

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