Pilot Tax Help

[pilothelp]

Hey everyone,

Hoping for some help. I am Chief Pilot of a small flight department and I have confused as to how taxes should be paid.

Company HQ - NJ *Pilots will never step foot in HQ or work in NJ

Flight Department Primary Business Address - CT

Employees - 1 lives in CT, 1 lives in NY

Airplanes - 1 airplane lives in CT, 1 lives in NY

We are paying workers comp in both NY and CT as days of work can begin in either state.

The address of business on the checks is the CT flight department address.

All flights go through NY. Including those with the CT based airplane. With the CT based airplane, all flights will originate in CT, fly directly to New York and pick up passengers. All flights will end by dropping passengers back in NY, and returning the airplane to CT.

So how should the CT and NY residing employee withhold state taxes? Would it be CT since the primary business address is in Connecticut and thats where the salaries are being addressed to? Does starting our day in NY affect anything?

HELP!

Thanks

MP-

 

[BentonHarbor]

Hey everyone,

Hoping for some help. I am Chief Pilot of a small flight department and I have confused as to how taxes should be paid.

Company HQ - NJ *Pilots will never step foot in HQ or work in NJ

Flight Department Primary Business Address - CT

Employees - 1 lives in CT, 1 lives in NY

Airplanes - 1 airplane lives in CT, 1 lives in NY

We are paying workers comp in both NY and CT as days of work can begin in either state.

The address of business on the checks is the CT flight department address.

All flights go through NY. Including those with the CT based airplane. With the CT based airplane, all flights will originate in CT, fly directly to New York and pick up passengers. All flights will end by dropping passengers back in NY, and returning the airplane to CT.

So how should the CT and NY residing employee withhold state taxes? Would it be CT since the primary business address is in Connecticut and thats where the salaries are being addressed to? Does starting our day in NY affect anything?

HELP!

Thanks

MP-

If you spend more than 50% of your employment in one state, then you pay state income taxes in that state. If you spend less than 50% of your employment in one particular state, you pay state income taxes where you live.

SEC. 1112.(a) No part of the compensation paid by any air carrier to an employee who performs his regularly assigned duties as such an employee on an aircraft in more than one State shall be withheld for income tax purposes pursuant to the laws of any State or subdivision thereof other than the State or subdivision wherein more than 50 per centum of the compensation paid by the carrier to such employee is earned: Provided, however, That if the employee did not earn more than 50 per centum of his compensation from said carrier in any one State or subdivision thereof during the preceding calendar year, then withholding shall be required only for the State or subdivision of the employee's residence, as shown on the employment records of any such carrier; nor shall such carrier file any information return or other report for income tax purposes with respect to such compensation with any State or subdivision thereof other than such State or subdivision of residence and the State or subdivision for which the withholding of such tax has been required under this subsection. "(b) For the purposes of subsection (a), an employee shall be deemed to have earned 50 per centum of his compensation in any State or subdivision in which his scheduled flight time in such State or subdivision is more than 50 per centum of his total scheduled flight time in the calendar year while so employed. "(c) For the purposes of this section the term 'State' also means the District of Columbia and any of the possessions of the United States; and the term 'compensation' shall mean all moneys received for services rendered by an employee, as defined in subsection (a) in the performance of his duties and shall include wages and salary." (b) That portion of the table of contents contained in the first section of the Federal Aviation Act of 1958 which appears under the heading "Title XI—Miscellaneous" is amended by adding at the end thereof the following: "Sec. 1112. Exemption of certain compensation of employees from withholding for income tax purposes for other than State or subdivision of residence and State or subdivision wherein more than 50 per centum of compensation is earned." SEC. 5. The amendments made by this Act shall become effective on the first day of the first calendar year beginning after the date of enactment of this Act. SEC. 6. If any provision of this Act or the application thereof to any person or circumstance is held invalid, the remainder of this Act and the application of the provision to other persons or other circumstances shall not be affected thereby. Approved December 23, 1970.