When nearly every business who was able adopted a work from home policy in 2020, employees began to reconsider where they lived while employers simultaneously began to wonder if they could expand the allowable geography for evaluating new candidates.
Fast forward into 2021 where the news is filled with stories about businesses who allowed their staff to relocate to warmer and cheaper locales and many employers are beginning to ask: does it really matter from where my next employee hails? The answer may be more complex than you think.
With a year of remote working under our belts, many employers assume they can manage employees from almost anywhere HOWEVER there are some pesky labor laws, not to mention tax consequences, that may get in your way. Here’s four to consider:
- Different states have different payroll tax requirements. Before you setup operations in another state, check with your payroll provider to make sure they can help you remain compliant.
- Although the Fair Labor Standards Act provides federal wage minimums as well as workweek guidelines, rules can vary by state. Once again, check with your payroll provider to make sure they know the rules and can help you remain compliant.
- Posting requirements vary by state. Be sure your payroll as well as your insurance provider can accommodate you with appropriate workplace notices.
- Business incorporation guidelines and fees vary by state. Before you setup shop and hire employees in a new state, make sure you’re fully evaluated the related expenses and fees.
Of course, if you’ve found the perfect candidate in another locale, there is almost always a way to make that hire work. For guidance on hiring employees in new geographies, please contact MarathonHR.