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How to comply with payrolls in different states

Asked by: Dana  — 30 May, 2013

How does an out of state corporation (WA) that’s hiring employees from FL, TN, NC, AZ, and ID who travel all over for work, comply with payroll?

Answered by: admin  — 30 May, 2013

Dana,

Based on my conversations with state representatives, this is what I learned:

1) Idaho: you will need to register for withholding tax, unemployment tax if the employees will do the majority of the work in Idaho, and form an ID foreign entity for the corporation if the employees will be transacting business under the company name.

2) Florida: you will need to form a FL foreign entity and register for reemployment tax.

3) Tennessee: there is no withholding tax, but you will need to form a TN foreign entity.

4) Arizona: you need to register for withholding, unemployment tax is required if salary is $1,500 and over per calendar quarter. You will need to seek legal advice in regards to foreign entity formation.

5) North Carolina: you will need to register for withholding tax and form a NC foreign entity. Not sure about unemployment tax, as I couldn’t reach anyone at the state to ask that question.

I hope that helps.

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