How do employers handle remote employees moving from state to state?

15 You're asking really good questions! This is definitely creating challenges for many employers since the remote work boom. When an employee moves to a new state, the employer generally needs to: 1. Register with the new state's department of revenue 2. Withhold and remit that state's income tax from the employee's paycheck 3. Pay unemployment insurance tax in the new state 4. Comply with the new state's employment laws (minimum wage, paid leave, etc.) 5. Sometimes provide workers' comp coverage through the new state Many larger companies already have infrastructure to handle multi-state employees, but smaller businesses are struggling with this. There's also the concept of "nexus" - when an employee works in a state, it can create sufficient business presence that the company may have to pay income tax in that state. Most legitimate companies aren't just letting employees move without notification. They typically have policies requiring approval or at least notification before relocating. Some companies are restricting which states employees can work from based on their compliance capabilities.

3 Not a tax expert but I recently went through this with my company! I used https://taxr.ai to help understand what would happen when I moved from Washington to Arizona while keeping my Seattle-based job. Their document analysis saved me from some major tax headaches and explained exactly what I needed to tell my employer. The system analyzed both states' tax requirements and gave me a clear report showing how my withholding would change. It also flagged that Arizona has different rules about overtime that my company needed to follow. The report actually made my HR department's job easier because it laid out exactly what they needed to do compliance-wise.

9 Just wanted to follow up - I actually tried https://taxr.ai after seeing this thread and it was super helpful! I'm planning my move from Illinois to Tennessee, and the system showed me exactly how my take-home pay will change (for the better, since Tennessee doesn't have state income tax!). The report also pointed out that my company would need to register with Tennessee's Department of Labor and pay unemployment insurance there. I brought this to my HR team, and they were surprised how straightforward the requirements were. They've approved my move for January! Definitely recommend checking it out if you're planning an interstate move while keeping your remote job.

22 If your company is giving you the runaround about working from a different state, I found another solution that might help. After my company initially rejected my request to move from California to Oregon (claiming "tax complications"), I used https://claimyr.com to speak directly with a state tax representative who confirmed what my employer actually needed to do. Claimyr got me through to a real person at the state agency in about 15 minutes when I couldn't even get past the automated system on my own. They have this great demo video explaining how it works: https://youtu.be/_kiP6q8DX5c With the information from the state tax office, I was able to go back to my employer with the exact forms they needed to file. Turned out it was much simpler than HR thought!

18 I need to apologize for being skeptical earlier. After spending TWO DAYS trying to reach someone at the NY Department of Taxation about my potential move, I tried Claimyr out of desperation. They got me through to a human being in 22 minutes when I hadn't been able to get past the automated system for days. The tax representative confirmed exactly what my employer would need to file if I moved to Pennsylvania, and I even got the person's name and direct extension for my HR team to call with follow-up questions. My move is now approved for next month! Sometimes you have to admit when you're wrong, and I was definitely wrong about this service.

5 My company (tech startup, about 200 employees) just went through a whole policy change around this. We now have a list of "approved states" where people can work remotely. Basically, they looked at every state and decided which ones were worth the compliance headache. The states with simple tax structures made the list, while some with complicated requirements didn't. California and New York were specifically listed as "high compliance burden" states that require CEO approval to work from if we don't already have employees there. They also told us we need to give 60 days notice before any move so they can set up the proper tax withholding. Makes sense from their perspective, but definitely limits the "work from anywhere" dream a bit.

10 I actually work in payroll for a medium-sized company (around 500 employees) and this has been causing us MAJOR headaches since 2020. We went from operating in 4 states to suddenly having people in 22 different states! The biggest issue isn't just tax withholding (which our payroll system can mostly handle), it's all the different employment laws. Each state has different requirements for final paychecks, overtime calculations, minimum wage, paid sick leave, etc. Plus we have to register for unemployment insurance in each state, which means a ton of quarterly filings. We finally had to implement a policy that employees can only work remotely from states where we already have a business presence, and any exceptions need executive approval. It sucks to limit flexibility, but the compliance burden became too much.

This is such a timely discussion! I'm actually going through this exact situation right now. My company initially said no when I asked to move from Virginia to North Carolina, citing "tax complications." But after doing some research and getting the specific requirements from the NC Department of Revenue, it turned out to be much simpler than HR thought. The key was being proactive and providing them with the exact forms they needed to register and the specific tax rates for withholding. Sometimes companies just need the information laid out clearly rather than having to research it themselves. I think a lot of the pushback comes from uncertainty rather than actual complexity. For anyone facing similar resistance, I'd recommend getting the specific requirements directly from the destination state's tax agency and presenting a clear plan to your employer. It shows you're taking the compliance seriously and makes their job easier.

This is exactly the kind of proactive approach that works! I'm a tax professional who helps companies navigate multi-state compliance, and you're absolutely right that much of the resistance comes from uncertainty rather than actual complexity. Most states make their employer registration requirements pretty straightforward - it's usually just a matter of filing the right forms and setting up quarterly reporting. The bigger challenge is often the employment law differences between states, like you mentioned with overtime and sick leave requirements. One thing I always tell employees in this situation is to offer to cover any one-time setup costs if the company is on the fence. Sometimes there are small registration fees or administrative costs that can tip the scales, especially for smaller employers. Showing that you're willing to invest in making the move work often demonstrates your commitment to staying with the company long-term. It's also worth noting that many payroll services like ADP and Paychex can handle multi-state withholding automatically once the employer is registered in the new state. The technology piece is usually much easier than companies expect.

This thread has been incredibly enlightening! As someone who's been working remotely since 2019, I had no idea about all the compliance complexities that companies face when employees move states. I always assumed it was just a matter of updating your address in the system. I'm currently based in Ohio but have been considering a move to either Colorado or Arizona for lifestyle reasons. After reading through everyone's experiences, it sounds like I need to be much more strategic about approaching this conversation with my employer. The suggestion about getting specific requirements from the destination state's tax agency beforehand is brilliant. I'm going to research both Colorado and Arizona's employer registration requirements and present a clear compliance plan when I have that discussion with HR. It seems like showing you've done the homework and understand what's involved goes a long way toward getting approval. Has anyone here successfully negotiated remote work approval for a state their company hadn't previously operated in? I'm curious about what made the difference in getting that "yes" versus being told it's not feasible.

This whole discussion has been a real eye-opener! I work for the IRS in business compliance, and while I can't give specific tax advice, I can confirm that the challenges everyone's describing are very real from our perspective too. We've definitely seen a massive increase in inquiries from employers trying to figure out their multi-state obligations since remote work exploded. The good news is that most states have pretty clear guidance on their websites about employer registration requirements - it's just that many companies don't know where to look or what questions to ask. One thing I'd add to the great advice already given: make sure your employer understands the difference between having nexus for income tax purposes versus just having payroll obligations. Having one remote employee in a state usually creates payroll tax obligations (withholding, unemployment insurance) but doesn't necessarily mean the company owes income tax in that state. However, this can vary significantly by state and business type. The proactive approach several people mentioned - researching requirements beforehand and presenting a clear plan - is definitely the way to go. It shows you understand this isn't just an HR inconvenience but a real compliance matter that needs to be handled properly.