Investigate a state that requires citizens to pay state income taxes (if someone has already selected a state, please select a different one). Find the answers to the following questions:

1. Who must withhold the tax? 2. How are covered employers and covered employees defined? 3. Are there any reciprocal agreements into which the state has entered? If so please describe them. 4. How is the withholding rate determined? 5. What payments are subject to withholding? 6. What payments are not subject to withholding? 7. Are there any employee withholding exemptions? 8. What methods of withholding are permitted? 9. Describe each of the returns required by the state.

Please do not simply copy and paste this information from the Web. Put your responses in your own words.

Seven U.S. states currently don't have an income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming. Residents of New Hampshire and Tennessee are also spared from having to pay state taxes, though they do pay tax on dividends and income from investments.