I have recently move to North Carolina but I telecomute to work in Hawaii. Under Hawaii labor law if a paycheck is paid by a business who's bank is in Hawaii, then the employee has to pay state taxes in Hawaii. My question is what kind of state taxes I'll have to pay in North Carolina since I'll be full time resident of North Carolina. If anybody can give me some info in this area or tell me where to go to find it, I would really appreciate it.
Thanks,
:)

It's not that the employer's bank is in Hawaii that requires state taxes be withheld, it's that you were working in Hawaii. Now that you are working in North Carolina, it is likely that the company has established "nexus" (a business presence) in NC and that they are required to register as an employer in NC and withhold NC income taxes and pay into NC unemployment.

Are they contuining to withhold Hawaii income taxes and state disability insurance?

Yes, my paycheck still shows Hawaii witholdings.

That's not correct. When you question the payroll person, what do they say?

Wait.

You have never physically worked in Hawaii?

I would tax you based upon NC tax tables.

If you had HI taxes taken out, you will have the unfortunate ability to file income tax returns in Hawaii and North Carolina. You won't be paying more taxes (well, not necessarily), since you should get credit from NC for the taxes you paid to HI.

I think that is the way it works.

I lived in Hawaii. My husband and I just moved here because he got a new job. My employer offered me to keep my position after I moved, so starting feb.07 I've been telecomuting.
The payroll people told me that they still have to take my witholdings in Hawaii according to state laws, but I want to know what kind of income tax I'll be paying in NC.

What your "payroll people" are telling you is a bunch of hooey. Contact the North Carolina Dept. of Revenue.

Section 5(a) here discusses withholding on residents. You will note that withholding is not required in NC ONLY if the employee doesn't also WORK in North Carolina AND the state in which the employee does work imposes an income tax withholding. That is not the case here.
http://www.dor.state.nc.us/downloads/NC-30.pdf

Also see Section 10(b) on pager 8 below which discusses withholding on nonresidents of Hawaii. You do not work in Hawaii. Period.
http://www.state.hi.us/tax/pubs/bklta.pdf

Thanks a lot for all the info.:) It has been extremelly helpful.