Human Resources

how is an out of state employee paid

I have an employee who lives in NC but works for my company in California. What taxes should the company be paying and what taxes should the employee be paying? What are the obligations to NC from the employer and employee? Thank you.

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  1. 74 Answers

    Hi in light of Covid-19 many organizations are now hiring employees remotely in different states. If the employee is in NC then you should be withholding state taxes for NC and you should be paying NC unemployment insurance taxes and possible workers comp. You should check with your payroll provider if you are using one. The employee should not be paying (or having withheld any CA taxes) employees are only obligated to the state in which they reside.

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