Does your company withhold state income tax for nonresidents when they travel for business?

Thank you for that info. I have question if you don't mind sharing: how do you track the 30-day threshold? and do you do retroactive withholding once they have passed it?

Hi Kate,

Here is a high-level overview of our process:

Compensation Team receives a monthly report of hotel stays (based on expense reports submitted) for all US employees.
Compensation Team analyzes the report for employees who have hotel night stays greater than 20 days
A 20-day letter is sent to an employee and their Manager when hotel nights are greater than 20 days in a non-resident state.  There is no impact to employee’s state tax withholding at this point.
A 30-day letter is sent to an employee and their Manager when hotel nights are greater than 30 days in a non-resident state.  
Payroll is notified and the next payroll is taxed accordingly. 
The total percentage of taxation for any pay period is 100%.  For example, employee is taxed in home state 30% non-resident state 70%.
The employee will be taxed in the non-resident state when they exceed 30 days
In the December payroll, employees receive a $50 stipend for each non-resident state they were taxed (to help off-set additional fees for tax preparation.)
We do not do any retroactive withholding.

I hope you find this information helpful.