Tax season is upon us, which gets everyone thinking, “I hope my withholdings are correct!” 

Due to the COVID-19 pandemic, there has been a significant shift to remote work within the past couple of years. As a company that has been entirely remote throughout its 14-year history, Procedure Solutions Management is well established with this way of working. 

While working remotely gives you the flexibility to live wherever you’d like, it can be tricky on the HR side regarding your taxes. As an employer with employees in 26 states and two countries, we know precisely how tough it can be. Here are some steps you can take to make this process easier. 

  • If you’re an employee, notify your HR Department if you plan on moving states. HR will work with the payroll department to ensure your new state is set up correctly in the company’s system. 
  • Once this change has been made, verify that the correct state taxes are deducted through your pay portal or pay stub. If you have moved to state B and are still working in state A, your taxes will be paid to the state you work in (state A). 
  • The employer has some extra work to do whenever an employee moves states or hires someone working in a different state. The main priority is registering your business as a foreign entity in that new state. Then your company can register for an SIT (State Withholding Tax) and SUI (State Unemployment) for that state.
  • Lastly, make sure to add that state to your insurance policy. After these steps are completed, you and your employee can pay the proper state taxes. 

I wish I could say this process is cookie-cutter, but unfortunately, each state is slightly different. Be sure to consult your HR Department before making any changes!  

Good luck and have a Happy Tax Season! 

By Christina Bennett, HR Manager

If you like our content, subscribe to our blog using the link to the right of this post. Or, visit our services page for more information on our staffing, training, and consulting services.