Question: Sante Fe Corporation s sales office and manufacturing plant are located

Sante Fe Corporation's sales office and manufacturing plant are located in State A. Sante Fe also maintains a manufacturing plant and sales office in State B. For purposes of apportionment, State A defines payroll as all compensation paid to employees, including contributions to § 401(k) deferred compensation plans.
Under the statutes of State B, neither compensation paid to officers nor contributions to § 401(k) plans are included in the payroll factor. Sante Fe incurred the following personnel costs.
What is the payroll factor for:
a. State A?
b. State B?

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  • CreatedSeptember 09, 2015
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