Any corporation that is looking for customers today extends beyond just the local neighborhood or area. Globalization and the internet mean that customers could actually cut across the entire country and beyond. To meet the needs of this massive group of people, it is essential to have employees that are flexible enough to work in multiple states. While just mentioning this option seems like a viable plan, there is one complication that would need to be addressed, and that is unemployment tax.
Employers are responsible for multi-state unemployment tax compliance, which involves both federal and state taxes. The state unemployment tax is paid in the state where the employee works. To better guide employers, there are some rules in place that can help determine the right state for these taxes to be filed. These include: –
It is also worth nothing that the state these taxes are to be filed may be at the discretion of the employer. This means that within reason, the employer can decide where to pay unemployment taxes.
When dealing with different states, it is important that you keep excellent state unemployment tax records. This will make it possible for reporting as well as processing of the tax payments. It is worth noting that the rate of these taxes may change from one year to the next.
As an HR director or employer navigating multi-state employment laws, it is essential that compliance is top of mind. Non-compliance attracts penalties. The employees are responsible for making sure they are aware of all tax requirements, especially unemployment and withholding. In the event that a filing is made in the wrong state, a correction should be made immediately to avoid penalties or charges on interest. To make sure that no mistakes are made, employers need to take time and consult with qualified tax advisors.
Compensation in HRM, especially planning and analysis, is a crucial procedure that should be handled effectively to determine every employee’s ...
Read moreHave you ever wondered why some employers, even after implementing a PTO policy, still find themselves in trouble with the ...
Read moreBusiness owners face a myriad of responsibilities by virtue of being in business and having employees. One of these responsibilities ...
Read moreWhat is Paid Time Off? Paid Time Off (PTO) is a policy in every organization that allows employees to pull ...
Read moreBusinesses make great efforts to retain their top talent. The easiest way to do this is with a raise in ...
Read moreCompensation in HRM, especially planning and analysis, is a crucial procedure that should be handled effectively to determine every employee’s ...
Read moreHave you ever wondered why some employers, even after implementing a PTO policy, still find themselves in trouble with the ...
Read moreBusiness owners face a myriad of responsibilities by virtue of being in business and having employees. One of these responsibilities ...
Read moreWhat is Paid Time Off? Paid Time Off (PTO) is a policy in every organization that allows employees to pull ...
Read moreBusinesses make great efforts to retain their top talent. The easiest way to do this is with a raise in ...
Read more