I just recently left a company in Texas April 6th(last day) now they tell you to provide an address where they can mail your final paycheck to you, but because I moved out of state to MD. They taxed me as if I was working in Md. I called payroll and explained to them what happened and I was told that I should have waited at least 7 days after I was no longer an employee with their company to change the address?? This way I wouldn't have been taxed as if I was in Md. at the time, can someone please explain that to me??

can someone please explain that to me??

Sure. Someone made a mistake when your change of address was entered. When we have a former employee move out of state, the payroll software asks if the state tax code should be changed to the new state of residence. Someone should have answered "No" to that question.

Get them to fix the problem. If they don't routinely send tax deposits to Maryland, they should be more than happy to do that than to set up an account with Maryland, file quarterly and annual reports, etc.

Absolutely, it's a mistake.

Worst case, if they don't fix it. You can correct it when you file your tax returns. You'll end up getting it back in MD but paying taxes on it in Texas. You'll need to file tax returns in both states anyways, and unless it was a large enough amount of taxes that the shortfall would result in penalties, it should work out in the end.

-Tim

Worst case, if they don't fix it. You can correct it when you file your tax returns. You'll end up getting it back in MD but paying taxes on it in Texas. You'll need to file tax returns in both states anyways, and unless it was a large enough amount of taxes that the shortfall would result in penalties, it should work out in the end.

-Tim

Not really. Texas does not have a personal income tax.

I stand corrected. He should ge it back then when he files MD taxes.

-Tim

Thanks for the replies I will contact them again and see if they will fix their error.