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An Employer’s Guide to Multi-State Payroll Tax Withholding for Remote Workers

Anders CPA

Remote workers have become a staple of the workplace, but hiring out-of-state employees can lead to payroll tax complications. Multi-state payroll tax withholding done incorrectly can lead to penalties and interest for employers and create tax headaches for employees.

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Employer Payroll Tax Obligations When Employees Work Out-Of-State

Anders CPA

This changing employment landscape requires employers to reassess their payroll tax withholding processes to ensure you are withholding the proper amount of state, local and unemployment taxes from your employees’ wages. Below we dive into the state and unemployment tax responsibilities employers need to know.

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The Benefits of Delayed Business Filings

CPA Practice

She is the CEO of CorpNet , the most innovative way to start a business, register for payroll taxes, and maintain business compliance across the United States. States with tighter schedules include Illinois and New York (up to 60 days) and Virginia (up to 15 days).

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Federal Paid FMLA May Be Out While States Consider Possibilities

ThomsonReuters

The Healthy Delaware Families Act would create a statewide FMLA insurance program to provide up to 12 weeks of paid FMLA leave. The program would be funded by 2% payroll tax, 1% paid by the employer, 1% paid by the employee ( L. The bill does not, however, establish a state-run PFMLI program. 2022, H2499 ). .

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5 States with the Lowest Combined Business Taxes

CPA Practice

Property and payroll taxes In addition to business or personal income taxes and sales tax, property and payroll taxes are important considerations. Property tax rates can vary significantly, impacting the cost of owning or leasing business space.

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Navigating the Latest Section 174 R&D Capitalization Rules: What Founders Need to Know in 2025

Shay CPA

Additionally, early-stage companies can opt to apply the credit against payroll taxes (up to $250,000 per year). If you do have non-federally funded R&D, you may be eligible for the credit on that portion.

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Accounting Firm Leaders Discuss Challenges/Benefits of a Remote Workforce

ThomsonReuters

Beary explained that employers could struggle to understand when to trigger filing and reporting requirements for payroll taxes due to varying rules across states. Rules vary greatly, from as little as withholding tax for an hour of work to up to 30 days if under a certain threshold.