did any remote workers get a notice about paying local taxes? If so can somone please explain what is going on please?
8 replies (most recent on top)
@dz I contacted payroll. In the cds look up system I (a remote or of state worker) am assigned to a Dearborn office. Payroll said the taxes are based on HCM system - not whats in your cds lookup.
Guess we'll see
The Train Station would be a perfect place to have development engineers work five days a week. That way they would have a new facility to work at and they could pay their fair share of taxes towards Detroit’s revitalization. All of the work can be directed from the new headquarters located on Dearborn which was originally meant for them. See, it all works out!
All comments below are correct, but not for a remote worker.
The general rule is you get taxed where you live, and where you earn the income (your employer location). So if you live in California, and work in MI, you must pay MI tax and CA tax. MI has agreements with some states, and you can use some of the MI tax to offset your local tax.
Ford and Agency employees get assigned to a building at FMC, and depending on the location of that building, the employee/contractor pays local taxes. So if you are assigned to the Train Station, even when you work half the time in Dearborn, you'll pay Detroit and MI Tax all year around, because Ford/Agency will take it from your paycheck.
However, remote workers from an Agency or Purchased Service, are located "home" o where the main Agency office is, depending on the agreement between the Agency and employee. These employees don't pay MI taxes if they are not located in MI, even when Ford assigned them to a building in MI.
Ford employees that are remote workers in another state, are assigned to a building that is a home location of the state where they live (CAHome, FLHome, etc.), so they don't pay MI tax, nor Detroit tax.
So, OP, I would suggest you to:
If you are a contractor, Ford doesn't take anything from your paycheck, you must talk to your Agency. Usually Agencies are flexible enough, so you'll pay only the state taxes where you live. No matter the building location assigned by Ford.
If you are a Ford employee, check what building you are assigned to in the superdupercds link. If is not the state you are living + home, you need to update it with your managers and maybe HR. If it is the state where you live + home, then check for that state taxes, and make sure your paycheck reflects that.
If you work in Detroit, you pay the city tax. However you can itemize the exact days you were in the office, to decide exactly how much tax you pay or is returned to you. And then you have to send it to HR for them to verify and sign off on it. In theory, the days should align to your badge swipes. In addition to surveillance, this tax implication is why they are tracking the swipes.
@a2 they have to. Bill Ford committed to have 5,000 w2 employees at the train station by now paying city and state taxes and there is nowhere near that. And nobody wants to work there.
@ad I have a friend that works in the Detroit tax audit department, I’ll send a suggestion.
If you spend even a minute in Detroit, you owe city income tax on your pay for that day.
That is why the ELT avoids being seen anywhere near the billion dollar train station. At 1.2% nonresident tax, Bill and Farley’s $20 million salaries bring $650 per day to Detroit if they even drive through it on their way to The Hub. I mean the new World HQ.
They should probably both be audited….
If you live in one of the cities that extorts a percentage of your income from you every year (Detroit, Pontiac, etc.), Ford is going to start withholding that money and paying it directly to the gang that controls your zone.