Usually states have income tax reciprocity.

New York and New Jersey for example do, so if you live in New Jersey and work in new york, you pay homeowners taxes in new jersey but income tax in new york.

If these volunteers came from Indiana which may not have tax reciprocity, the taxes may be withheld by the employer in New York but then reported as income to the home address in Indiana (which has zero tax witholdings on its books)

A decent tax accountant (basically anyone other than the mall/walmark kiosk people) can sort this out, and they usually sort it out by paying both states and deducting your obligation to the federal government. So fedgov takes the hit and both states get paid. womp womp, forgot that changed

Usually states have income tax reciprocity.

New York and New Jersey for example do, so if you live in New Jersey and work in new york, you pay homeowners taxes in new jersey but income tax in new york.

If these volunteers came from Indiana which may not have tax reciprocity, the taxes may be withheld by the employer in New York but then reported as income to the home address in Indiana (which has zero tax witholdings on its books)

A decent tax accountant (basically anyone other than the mall/walmark kiosk people) can sort this out, and they usually sort it out by paying both states and deducting your obligation to the federal government. So fedgov takes the hit and both states get paid.