Have you ever hired employees out of state?

[Mynyel]

I am trying to find info on this that is simply explained. I have looked at the USDOL and SBA and such but they have a lot of extra stuff in it. I just want it simply explained how to have employees in other states.

 

Well, if possible. Employment laws have become very convoluted.

[zoobie]

Employment laws do vary a ton by state. You'll need separate workers comp and liability insurance coverage in that state. It may be beneficial to operate an entirely separate business for that state versus a satellite office. I don't think there is a simple answer. It depends on what type of business and the states involved. If there's a city that sort of straddles the border between your state and that one (assuming it's a neighboring state), a business lawyer and good CPA could give you the best answers. Generally the border guys (not necessarily men ;) ) know both states' laws well.

[LMA]

My husband has worked for a company that did not have offices in our state but he was a full time employee with a home office. The company has to follow the employment laws of the state in which the employee resides. For example, the company has to follow the laws regarding paying wages. If you provide health insurance, it has to be a plan that can be accepted in the states of all your employees.

[Tita Gidge]

My husband has worked for a company that did not have offices in our state but he was a full time employee with a home office. The company has to follow the employment laws of the state in which the employee resides. For example, the company has to follow the laws regarding paying wages. If you provide health insurance, it has to be a plan that can be accepted in the states of all your employees.

 

The company I worked for was based in Texas but had satellites in three other states.

 

The company had to follow the laws for which state the employee was assigned to work.

 

Most people work and reside in the same state, but not all do. For example, I worked in San Francisco but resided in Honolulu. So I was bound by the CA state labor laws, even though I didn't reside there nor was the company based there. I paid into and qualified for CA state disability, and was covered by CA's state FMLA on top of the national FMLA, and so forth. I paid income tax to HI, where I resided.

 

So I agree with LMA and had a similar but somewhat different experience WRT "resides" versus "assigned."

[LMA]

 

The company I worked for was based in Texas but had satellites in three other states.

 

The company had to follow the laws for which state the employee was assigned to work.

 

Most people work and reside in the same state, but not all do. For example, I worked in San Francisco but resided in Honolulu. So I was bound by the CA state labor laws, even though I didn't reside there nor was the company based there. I paid into and qualified for CA state disability, and was covered by CA's state FMLA on top of the national FMLA, and so forth. I paid income tax to HI, where I resided.

 

So I agree with LMA and had a similar but somewhat different experience WRT "resides" versus "assigned."

 

The difference is that my husband did not have an office to which to report. He was a lone home office and paid income tax to his home state. The company considered him an employee of the home state and took out all payroll taxes for his state.

 

Now he used to work in a neighboring state and had to pay the non-resident income taxes to the state of the company. When they opened up a location in his state of residence, he could pay in-state taxes to the home state.