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Employee Working From Anywhere... Compliance Issues That Must Be Resolved
Sky Event (Richardson, TX) ^

Posted on 09/18/2023 12:57:32 AM PDT by MalPearce

Excerpt from agenda of an upcoming webinar:

An employee now living and working from home in Indiana would be subject to Indiana wage-hour laws even if the employee used to work in Illinois and the employer is still located in Illinois. Overtime rules, minimum wage rates, and permitted deductions from paychecks, even pay stub requirements are governed by where the employee is physically performing the work. The same applies to garnishments for child support and creditors.

(Excerpt) Read more at skyeventmanagement.com ...


TOPICS: Business/Economy; Miscellaneous
KEYWORDS: home; insurance; labor; policy; tax; telecommuting; work
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To: fruser1
Tax and withholding is not likely to be a big deal for employers as they will typically hire accountants that have easy access to info on the different jurisdictions and rates.

I disagree with this somewhat. In most companies it is not a hired or outside accountant that processes the payroll, and in my experience, a lot of accountants, even CPA’s do not know that much about payroll.

This is why it is important for companies to hire an experienced payroll person who is aware of and well versed in payroll taxation and regulations, compliance issues especially when multiple states are involved.

Even if the company is utilizing ADP or Ceridian, etc., for payroll, it is incumbent on the company’s payroll staff to set up employees properly so the correct taxes are withheld and remitted, and those payroll processing companies will not give tax advice and often their customer service reps are clueless.

The company also needs someone, whether that be HR and or PR who is knowledgeable or at least able to research wage and hour issues. Do you have an employee working in a state that has a higher minimum wage than the federal minimum wage or working in a state such as California (and others) where you are required to pay a terminated employee all wages due at the time of termination? Most accountants are clueless on these types of compliance issues.

21 posted on 09/18/2023 5:52:09 AM PDT by MD Expat in PA (No. I am not a doctor nor have I ever played one on TV. The MD in my screen name stands for Maryland)
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To: AppyPappy

One of the worst things about CA payroll is the requirement to pay terminated employees (whether voluntary or involuntary) on the date of their termination, for all wages due including accrued vacation, earned bonuses, etc., although CA is not the only state with that requirement.

Their overtime rules are funky too.

https://www.worklawyers.com/overtime-laws-california/


22 posted on 09/18/2023 5:57:32 AM PDT by MD Expat in PA (No. I am not a doctor nor have I ever played one on TV. The MD in my screen name stands for Maryland)
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To: pepsionice

Putting all military targets in one location doesn’t make sense.

The military is also a leviathan of sloth and refusal of change.
Do you think jogging and borderline starvation make strong troops?

The company I work for is ecstatic because the pool of talent is countrywide now.

I would say it’s highly positional and sector dependent.


23 posted on 09/18/2023 5:58:15 AM PDT by EEGator
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To: MD Expat in PA

How dare they make good on their promises…


24 posted on 09/18/2023 5:59:50 AM PDT by EEGator
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To: MD Expat in PA

Excellent comment - especially the concept of nexus. On the subject of multiple employees & multiple nexus locations, I’d say the NFL & NBA would be very interested in advancing the discussions on reciprocity, given the large traveling payroll for games across the country. I certainly don’t envy the lower-paid support staff needing to do multiple state tax returns or the expense of tax professionals to keep it straight.


25 posted on 09/18/2023 6:03:19 AM PDT by T-Bird45 (It feels like the seventies, and it shouldn't. )
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To: DataJunkie
I’ve been a remote worker for 16 years, the first remote worker the company ever had. For a few years my paycheck reflected the company’s state in taxes, the state I moved to doesn’t have state tax. I was contacted by someone in accounting who said I should question this so I went to a local tax accountant in my residential state who confirmed that I shouldn’t be paying some of those taxes. I then had to file a form with the the state where my company resides proving where I lived. That state agreed that I shouldn’t have to pay those taxes and I could reclaim 3 years in back taxes. I believe these laws go state by state.

This type of issue results from one of several things or a combination.

-The company’s payroll person was not well versed in multi-state payroll.

-A supervisor who didn’t inform payroll of the change of your work location. Yes, payroll however should have been triggered by your change of home address to question where you were working.

Sounds like the accounting department caught this in some type of audit and good for them!

At my last job, a company with over 3,500 employees in nearly all 50 states and many working remotely, we ran weekly change of home address reports to identify this type of issue.

And I was responsible for setting up new hires and when I saw an employee assigned to a work office in another state from the employees home address (and not close by enough to commute back and forth), I would question both the employee, their supervisor and HR as to their actual “physical” work location and would often have to get HR to change the work office to their lived in state office if there was one, or flag them as “Working from Home” so taxes would be withheld based on their home address in the PR/HRIS system and send the new hire the correct state withholding form to complete and send back.

It used to drive me crazy when the supervisor would come back and say, “They are going to be working from home for the first couple of months then moving to x state.” My answer was always, “While they are working from home, they are subject to that state’s withholding. After they move, they will need to update their address in the system or with HR and we will update the state withholding accordingly.”

Sometimes the employee didn’t like this answer as it meant they would have to file state tax returns in two states for that year, but it is what it is. In the rare cases where the employee was moving within a week or two after hire, I could set them up from the start with their new address if it was known so to avoid this.

26 posted on 09/18/2023 6:26:41 AM PDT by MD Expat in PA (No. I am not a doctor nor have I ever played one on TV. The MD in my screen name stands for Maryland)
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To: EEGator

There are so many interesting issues his story raises.

The fact that one employee could increase productivity by hundreds of times shows the lie in the leftist’s “equity” and “equality” nonsense.

The company had nobody in his league—not even close.

The “street smarts” hiding “his secret” shows how everyone has difference preference curves.

Once his basic needs were met he had a high preference for leisure time—so he had no interest in getting promoted or becoming rich and powerful or famous. He definitely had that capability—just really enjoys his privacy.

The story also shows what AI could do at some point—almost all of the jobs at his employer could go away with one AI as capable as he was—and no interpersonal skills were needed, just raw programming talent.

It is amusing that the bosses never caught on—the moral of that story is that is dangerous to promote people who are not true subject matter experts—they can be easily fooled.


27 posted on 09/18/2023 6:30:19 AM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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To: T-Bird45
Excellent comment - especially the concept of nexus. On the subject of multiple employees & multiple nexus locations, I’d say the NFL & NBA would be very interested in advancing the discussions on reciprocity, given the large traveling payroll for games across the country. I certainly don’t envy the lower-paid support staff needing to do multiple state tax returns or the expense of tax professionals to keep it straight.

It is not just professional athletes - NFL & NBA, MLB, NHL, etc., but also actors and musicians who face this as they are taxed in each state in which they perform, i.e. earned income. It has to be a nightmare to track but I would guess there is specialized software to track it.

But I also went to a seminar where the question of salespersons who make sales in multiple states may be subject to state income tax based on the sales they made in each state or even an apportionment of time spent in each trying to make sales. The company I worked for a the time had no practical way of tracking this, so we took the position of taking our chances that it would never come up unless an audit was triggered.

Some years ago I had a phone interview with the Baltimore Ravens for a PR position and while it paid well and had some great benefits, I’m sort of glad they didn’t hire me 😊

28 posted on 09/18/2023 6:45:45 AM PDT by MD Expat in PA (No. I am not a doctor nor have I ever played one on TV. The MD in my screen name stands for Maryland)
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To: cgbg

I’m similar in that I don’t want the promotion, just more free time/less stress.

I used to seek the “he’s the best”. All it got me was more work, higher expectations, and no additional pay.

I wonder what percentage of jobs are completely useless?
I’d say way more than society can allow.

I don’t see our future being like a highly educated, no money society like Star Trek.


29 posted on 09/18/2023 7:00:02 AM PDT by EEGator
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To: MD Expat in PA

It’s one of the reasons I am retiring. Payroll is telling us “We don’t what we should do but you guys should fix this”


30 posted on 09/18/2023 7:06:07 AM PDT by AppyPappy (Biden told Al Roker "America is back". Unfortunately, he meant back to the 1970's)
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To: EEGator

“I don’t see our future being like a highly educated, no money society like Star Trek.”

Yup—right now it is beginning to look a lot more like “Blade Runner”—a very few extremely wealthy folks and almost everybody else dirt poor.


31 posted on 09/18/2023 7:16:30 AM PDT by cgbg ("Creative minds have always been known to survive any kind of bad training." Anna Freud.)
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To: MD Expat in PA

Thanks for the reply. I will cut my company some slack as it is a smaller company, employee wise. A lot was done manually at the time and I was the first to work from home so that was new territory. To their benefit, a lot of processes have changed over time, payroll being one of them. Having payroll automated probably flagged my deductions at the time and it’s been fine ever since.


32 posted on 09/18/2023 9:48:43 AM PDT by DataJunkie
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To: MalPearce

Welcome to big company land. The company I work for has offices all over the world, and plenty of remote workers scattered even further afield. And yes that means the need to know the mechanics of every country, and every region within those countries. By and large they make their rules on a “worst case” basis. So whatever rule is the most annoying carries everywhere. This is especially true because we have offices in Germany, and they have some laws that specifically forbid being “nicer” to non-German workers.


33 posted on 09/18/2023 9:53:46 AM PDT by discostu (like a dog being shown a card trick)
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