Reciprocal Agreements

A Reciprocal Agreement is an agreement between two states that allows resident employees to pay state withholding taxes for only their resident state and not the state in which they work. However, not all states have reciprocal agreements. The below table will provides a framework for the states that have agreements in place. 

In order to claim this exemption, the employee will need to complete a Certificate of Non-Residency and provide it to their employer. Once the certificate is received, the employer will need to update the employee's profile within the payroll application to prevent state income taxes to be calculated, debited, and deposited for the worked in state. 

Resident State	Worked In State	Certificate of Non-Residency
California, Indiana, Oregon, Virginia	Arizona	WEC
Outside of the District of Columbia	District of Columbia	D-4A
Iowa, Kentucky, Michigan, Wisconsin	Illinois	IL-W-5-NR
Kentucky, Michigan, Ohio, Pennsylvania, Wisconsin	Indiana	WH-47
Illinois	Iowa	44-016
Illinois, Indiana, Michigan, Ohio, Virginia, West Virginia, Wisconsin	Kentucky	42A809
District of Columbia, Pennsylvania, Virginia, West Virginia	Maryland	MW 507
Illinois, Indiana, Kentucky, Minnesota, Ohio, Wisconsin	Michigan	MI-W4
Michigan, North Dakota	Minnesota	MWR
North Dakota	Montana	MT-R
Pennsylvania	New Jersey	NJ-165
Minnesota, Montana	North Dakota	NDW-R
Indiana, Kentucky, Michigan, Pennsylvania, West Virginia	Ohio	IT-4NR
Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia	Pennsylvania	REV-419
District of Columbia, Kentucky, Maryland, Pennsylvania, West Virginia	Virginia	VA-4
Kentucky, Maryland, Ohio, Pennsylvania, Virginia	West Virginia	WV/IT-104 R
Illinois, Indiana, Kentucky, Michigan	Wisconsin	W-220

Please see the attached for more details: 

• Multistate Withholding Requirements Reciprocity.pdf