There are additional state and local tax programs like workers comp and disability insurance, job training, paid family leave, state income taxes if your entity

There are additional state and local tax programs like workers comp and disability insurance, job training, paid family leave, state income taxes if your entity is registered in that state, local taxes, etc. As you might expect, higher cost of living states tend to be more liberal and have more programs that employers are expected to fund. Moving employees out of those states saves money.