When expanding your workforce across state lines, hiring an employee in a new state requires careful attention to state-specific regulations. Here's a few tips to help you navigate the process and stay compliant with state laws.
Register for State-Specific Taxes and Accounts
Each state has its own requirements for taxes and employment accounts. You’ll need to:
State Income Tax Withholding (SIT): Register with the state’s tax agency to withhold income taxes from your employee’s paycheck. Each state has its own process and rates for income tax withholding.
State Unemployment Insurance (SUI): Most states require employers to contribute to an unemployment insurance fund. Register for SUI in the new state to comply with unemployment compensation rules.
State Disability Insurance (if applicable): In certain states, employers must provide disability insurance coverage, which may require separate registration.
Local and City Tax: In certain states, employers may need to register for Occupational Privilege Tax, City Tax, and other local taxes.
Update GoCo in a timely manner
Once you've registered for the necessary state accounts, contact GoCo Support Team to provide the new state details to be entered into your account. This ensures that taxes, withholdings, and deductions are processed according to the regulations of that state.
Please be mindful that accurate tax rates and frequency requirements communicated from the state are imperative for GoCo to properly remit your payroll tax payments and filings.
Some states will provide details immediately, and some will mail details to you. We know that there is at times a delay between hiring a new employee and when you can provide these details to GoCo, but providing them as soon as you can will help to ensure compliance.
Obtain Workers’ Compensation Insurance
Workers’ compensation insurance is mandatory in most states. Be sure to:
- Check the requirements in the new state.
- Contact your insurance provider to extend coverage, or purchase new workers' compensation insurance if needed.
Report Your New Hire to the State
- All employers are required to report new hires to the state’s New Hire Reporting Program. This helps states enforce child support orders and track employment data.
- Ready for the good news? This will be handled for you automatically behind the scenes.
Follow State-Specific Employment Requirements
Each state can have additional requirements. It is always best to reach out to your internal HR team, Outsourced HR expert, or employment lawyer to make sure you are in compliance with all state specific requirements and labor laws.
For any additional questions, please reach out to us at help@goco.io 💚
Disclaimer:
This article is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer or HR expert for specific guidance.