EmpowHR: Section 8 - ESS

Certificate of Non-Residence for State Tax

States with reciprocal agreements have agreed that if taxes are withheld for the residence State, taxes will not be withheld for the duty station State. A certificate of non-residence allows an employee to declare non-residency for the duty station State to have taxes withheld for the residence State.

State laws and regulations should be checked to determine if reciprocal agreements are in place before processing a certificate of non-residence for an employee. In most cases, the employee must reside in one of several designated States to be exempt from the mandatory withholding provisions of their duty station State.

If your duty station changes, the certificate of non-residence in effect at that time will become void, and a new certificate is required for the new duty station State (if applicable).

Each certificate of non-residence is to be completed following the instructions on the individual form. Enter the duty station State tax document to waive liability before entering the State tax document for the residence State. Type WAV (waiver) in the Total Number of Allowances Claimed field.