Congress should set a standard for withholding and payment of state income taxes for employees who work in more than one state, according to
Melancon said small business are particularly impacted by the lack of a standard. "A uniform national standard will significantly simplify compliance with all of the different state laws," Melancon wrote. H.R. 1864 would require an employee's earnings to be subject to state income tax and withholding when the employee performs work in a state for more than 30 days during the calendar year. Melanson said the bill would make it easier for employers to judge if withholding should be higher for a state other than an employee's home state.
