Complicated multistate tax laws can confound even the most savvy employers, but there’s no reason to sacrifice a good night’s sleep worrying over it.

Vice President of Sales, Tax & Compliance, Summer Poletti, explains what your company needs to do to stay in compliance and avoid costly penalties.

Navigating the Laws that Change from State to State

To help you navigate the patchwork of state and local laws that apply to your employees who cross state lines for work or perform work across multiple states, here are a few general rules:

  • Many states have reciprocal agreements to ensure that employees who live in one state and work in a different state are not subjected to double tax withholding – check for these agreements to avoid overpaying taxes

  • Since regulations vary from state to state, always check the laws in all states where your employees live and work

State Unemployment Insurance Laws

The regulations concerning state unemployment insurance and payroll taxes can be confusing. In some cases, they are paid to different states for the same employee.

  • If your employee lives in one state and works in another, the home state receives the withholding taxes while the state unemployment insurance (SUI) is paid to the work state

  • When an employee is temporarily working out of state, the SUI is due to the permanent work state

  • For remote employees, the home office determines the work state

  • When employees work in multiple states, SUI is paid to the state where the company’s base of operations or corporate office is located

Staying Compliant Without the Headaches

With Asure’s customizable software, our clients receive all the benefits and flexibility of in-house payroll tax processing without the stress and additional work hours. Benefits include:

  • Totally customizable payroll tax platform

  • Scalable technology to grow with your business

  • Competitive rates and fees

  • Experienced implementation team that has navigated multistate compliance for a wide range of industries like higher education and healthcare

You can access our whitepaper on the topic here or download a sample of the multistate payroll tax guide we created for our clients. For further information, click here to contact one of the multistate payroll tax experts at Asure.

Unlock your growth potential

Talk with one of experts to explore how Asure can help you reduce administrative burdens and focus on growth.

scroll to top icon