In addition to the general workday communication issues, there are individual income tax issues, as well as benefits issues. The company now has to do payroll t

In addition to the general workday communication issues, there are individual income tax issues, as well as benefits issues. The company now has to do payroll tax in another state, and find a health care plan in the employee's state. This is often not worth the expense for a small company. Furthermore, location of an employee in another state may establish a tax nexus in that state (depends on the state), causing the company to have to pay income taxes in that state. This is generally not worth it for a company of any size. If you're a telecommuter, you are generally best off by trying to work for an enlightened huge company that already has offices everywhere, or doing corp-to-corp consulting.