How and where do I update my tax withholdings?
How much of my pay is taxable vs non-taxable?
What is a tax home?
How do state tax deductions work?
What are courtesy tax withholdings and reciprocal agreements?
Why do I have to pay CA SUI/SDI while my assignment is in Indiana/Oklahoma/Wyoming?
How and where do I update my tax withholdings?
If you want to view or update your tax withholding information in ADP, go to www.workforcenow.adp.com on a desktop via Google Chrome and navigate to Myself > Pay > Tax Withholdings. ***ADP is still working on making this function fully accessible via mobile App so in the meantime, this function only works on computers.***
***Important notes:
If you are working an assignment in North Dakota or Utah, you are required to use the same filing status for both federal and state income tax withholding elections. When you log in to ADP, you will only see the Federal W-4 Form in the Tax Withholding section of onboarding. You will no longer complete a state withholding form if working in these states, and your Federal tax withholding elections will be used for both federal and state tax withholdings.
If you are on an assignment in Colorado, ADP will use your W4 elections as well. If you would like to update your Colorado withholdings only, please submit form DR004 to hello@trustedhealth.com with a subject line of ATTN: Payroll.
How much of my pay is taxable vs non-taxable?
As a general rule, all of your income is taxable. However, there are certain exceptions, such as housing or meal reimbursements, that we will provide you with for an assignment located outside of your tax home--these exceptions are non-taxable.
While our team is here to help, we’re definitely not tax experts and don’t pretend to be ones on the internet! We know that figuring out taxes can be confusing, so for specific information on taxable vs. non-taxable pay, we suggest checking in with an attorney or tax/IRS professional.
What is Tax Home?
According to the IRS, your tax home is “the entire city or general area where your main place of business or work is located, regardless of where you maintain your family home.”
If you stay in one place or at one facility for more than a year, your tax home may change to that location. Some clinicians won't want to stay more than a year due to this--however, decisions about your tax home are always up to you and your tax advisor to make!
Your Care Team is not a tax expert and cannot provide tax advice. We know this can be confusing and want to ensure you receive proper guidance, so for more information on tax homes, we suggest checking in with an attorney or tax professional.
For more information on tax homes, check out this Trusted blog post- Travel Nurse Taxes: What Are Tax Homes?
How do state tax deductions work?
As the employer, we are obligated to apply taxes according to the state of the facility where work is taking place. However, we also support courtesy tax withholding requests and honor reciprocal agreements upon request.
If you would like to request a courtesy tax withholding or process a reciprocal agreement, reach out to your Care Team by sending a message in the Trusted Inbox.
What are courtesy tax withholdings and reciprocal agreements?
A courtesy state tax withholding can be requested to withhold taxes for your state of residence if you are working in a different state. This is especially useful if an assignment is in a state with no-income tax, but you live in a state that has them.
States with no income tax are: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming
A reciprocal agreement, also called reciprocity, is an agreement between two states that allows residents of one state to request exemption from tax withholding in the other (reciprocal) state. This can save you the trouble of having to file multiple state returns.
Check out this resource from Turbo Tax to see what states have this agreement.
***NOTE: If you have requested to apply a courtesy tax withholding or reciprocity agreement, this will remain on file until requested otherwise.
We also have these additional resources on travel clinician tax topics:
How I do find out if I have both Lived in (Home) state and Worked in state taxes on my ADP profile?
To find out if you have your correct tax set up, please log into workforcenow.adp.com on a desktop computer (NOT ADP app or Mobile Browser) then navigate to Myself > Pay > Tax Withholdings. On this page, you will see Federal and two state forms you are set up for tax withholdings. At the bottom of the page, click on View Saved Tax Forms.
You will see all the tax withholding forms you have completed throughout the entirety of your employment with Trusted. Please make sure to update the withholding forms with every assignment to maintain accuracy.
Why do I have to pay CA SUI/SDI while my assignment is in Indiana/Oklahoma/Wyoming? ***Only for those working in IN/OK/WY
The state of Indiana, Oklahoma, and Wyoming has taken the position that travel clinicians are incidental wage earners in these states respectively, and thus will not offer unemployment coverage for you. Unemployment insurance is required for anyone employed and as such we had to obtain coverage for you through our headquartered state of California. California law requires that employers withhold SDI contributions on employees’ behalf so they may participate in the State Disability Insurance program.
California does not allow opting out of this required unemployment insurance allocation and as an employee of Trusted Health working in these three states, it will continue to be deducted until the contract is completed. You could file for unemployment in California but it all depends on your unemployment criteria and/or if you met the statutes that grant you unemployment eligibility. We are reporting your unemployment insurance wages to California for the assignments you take in IN/OK/WY. Hence, California SDI is a benefit to you.
I have an important tax question, can you help me?
We aren't tax professionals so are not able to give legal tax advice. However, we want to ensure our clinicians get the proper guidance when they do have tax questions. To make that happen, we've partnered with Travel Nurse Tax to give clinicians access to tax professionals that are knowledgeable and ready to help!
Joe Conte, is the founder of Travel Nurse Tax and his wife is a nurse, former traveler, and now a nursing instructor at a local university. They are HUGE fans of nurses, clinicians and supporters of medical professionals in general.
The team at Travel Nurse Tax has established a 25% discount code for all services for Trusted nurses. Simply use "TRUSTED25" when contacting Travel Nurse Tax for discounted services.
To read more about their services and to sign up, check out Travel Nurse Tax!