Glossary • Updated 2026
Payroll Withholding
Income + FICA taxes remitted per paycheck: the trigger that creates nexus and the duty that proves payroll.
In detail
One W-2 in a state generally creates physical nexus there.
S-corps must run owner payroll at reasonable compensation.
Quarterly 941s + annual W-2/W-3 + state equivalents.
Where it matters
More definitions
Sources
- Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries