Non-resident Definition

An individual whose permanent home is in a different location from where they work.

Non-resident Extended Definition
In the context of U.S. payroll, non-residents usually refer to an employee who lives in a different state than the workplace location. This could be on a temporary basis for a contract assignment or a permanent basis, where the employee lives close to the state border.

Each state has rules for calculating and withholding state income tax for these non-resident employees.

Related Articles
Non-resident Certificates for Employees in Other States
Multi-State Income Tax Withholding

Last Updated By

Rachel Blakely-Gray | Apr 28, 2023