4 ms·

Nope, just need to register as a foreign entity.

• neltnerb 6y ago
  That can get pricey, in MA it's $500 a year to register as a foreign entity. Then you need registered agents in each state which could be your employee there but maybe you don't want them to do that. I think you are right about employees. There needs to be some ID associated with state withholdings. I think you are wrong if they are contractors. You just need to send the IRS the 1099 since there is no withholding done on money paid that way. The person receiving it plus the 1099 I send the IRS is enough for the IRS to confirm the income.
  • snuxoll 6y ago
    I live in ID and work remotely for a CA-based company. I get paid from the same EIN that people working in the CA office do. Yes, they had to file as a foreign entity and that also means a registered agent in the state, but they also have to pay into Idaho’s unemployment insurance for my wages as well which costs them more than that.
    • neltnerb 6y ago
      Makes sense. You're an employee. If you were a contractor they wouldn't have to do that stuff and you'd get taxed at a weird rate and have to report it yourself. But you'd have to actually be a contractor for that, if you're truly an employee then it is what it is. So it sounds like the workaround is that said MA company has to start a NH foreign entity, which I assume is all but free, and have that foreign entity pay the employees. That way they're "working remote" for a NH entity and sidestep all this nonsense. But it's fair to say... why bother, just go back to using the rules you clearly understood to be fair which you were using earlier this year.