All of my employees are remote W2 employees with health benefits, etc. Over time, employees have moved to different states and now I am paying having to pay unemployment and payroll taxes in multiple states. I use Quickbooks for payroll which automatically calculates and pays the taxes so that part is not difficult but it increases our accounting expenses having to deal with multiple states and I am wondering if there is a better way to pay people?
I do not want to pay them as contractors so that is not an option. I’ve looked at PEO’s in the past but they seem to be more expensive than just doing it the way we are already doing it.
Is there anything else out there I should be looking at to make payroll and taxes more efficient?
This is an issue for many employers. Easier when they lie to you and don’t tell you they are in other states. Fortunately e have employees in 48 states anyways so have to deal with ir but I’ve worked with employers who will let someone go over dealing with it.
Yeah its a big issue which is why I don’t some people’s oh no one is ever going to know mentality. Sure the larger the company you work, the better your chances are. But if you work for a smaller company, it’s more of a when not if kind of situation.
I actually know someone who moved to a new state, got caught 7 months later and was fired. Over a few drinks I listened to him bitch about how it was bs, it’s illegal for the company to fire him, he’s going to sue, how a coworker must of snitched on him cause it’s impossible for the company to know where he’s working from, so on and so on. He just ignored me when I tried to explain that the state likely sent a letter asking why they weren’t getting paid and of course his company got angry after finding out they’ve been paying the wrong state for 7+ months.