Handsome Rob provides transportation services in several western states. Rob has payroll as follows: Rob is a California corporation and the following is true:
Rob hasincome tax nexus in Arizona, California, Nevada, and Washington. The Washington drivers spend 25 percent of their time driving through Oregon. California payroll includes $201,400 of payroll for services provided in Nevada by California-based drivers. What is Rob's California payroll numerator?

Question

Handsome Rob provides transportation services in several western states. Rob has payroll as follows:  Rob is a California corporation and the following is true:
Rob hasincome tax nexus in Arizona, California, Nevada, and Washington. The Washington drivers spend 25 percent of their time driving through Oregon. California payroll includes $201,400 of payroll for services provided in Nevada by California-based drivers. What is Rob's California payroll numerator?

Quizplus · Accepted Answer

Rob's California payroll numerator includes all payroll for services provided in California, regardless of where the driver is based, as well as any payroll for services provided in other states where Rob has income tax nexus. This includes the $201,400 of payroll for services provided in Nevada by California-based drivers.

Therefore, Rob's California payroll numerator is:
California payroll + Payroll for services provided in Nevada by California-based drivers
= $932,315 + $202,400
= $1,134,715.

Handsome Rob Provides Transportation Services in Several Western States