3 ms·
Registering for payroll tax in another state is generally very straightforward, and carries minimal additional income tax consequences (unless the employee at i
by gamblor956 4y ago
Registering for payroll tax in another state is generally very straightforward, and carries minimal additional income tax consequences (unless the employee at issue is an executive).
If the company uses a payroll services provider like ADP, it really is as easy as having the legal department register for payroll tax (and unemployment tax, if that is a separate registration in that state), a roughly 15-30 minute process, and providing the relevant ID numbers to ADP.
- NovemberWhiskey 4y agoIt's not just about payroll - there are all other kinds of employment-related laws that must be complied with which are set at a state level. For example, minimum required vacation time, sick leave, minimum wage, employment contracts (e.g. restrictive covenants), required reimbursement for employment-related costs.
- gamblor956 4y agoA lot of those laws don't kick in if you've only got a single employee in-state; there is usually a threshold before an out-of-state employer is subject to those laws. The threshold is usually 10 employees, but it varies by state, and can even vary by the size of the employer, so I left this out. However, payroll compliance and unemployment kick in with a single employee. There is no minimum threshold.