It’s no longer a surprise that millions of Americans are still working from home as a direct result of the ongoing coronavirus pandemic. While remote work has become the new normal, another question has continuously popped up: can employees work in another state either temporarily or permanently? There are many different things that employers must consider regarding their employees working from another state.
Employers should set clear standards and guidelines for employee expectations while working from home. These expectations should include everything from mandatory hours of work and availability, to work product.
Considering Tax Consequences
One of the most important things to take into consideration regarding employees who want to work out of state is tax ramifications as well as issues with payroll. Unfortunately, this isn’t a simple answer. There are a number of factors to consider such as the states involved, how long the employee has been there and will be there, etc. This may impact an employer in that it may be responsible for the other state’s taxes. This is so important because each state has a different income tax and withholding requirements as well as different lengths of time for when someone is considered to be working remotely for purposes of state tax implications. For example, in New York state it’s 14 days while in Illinois it is 30 days before tax implications are triggered.
While the law has been slow to respond to the rapidly changing work situation due to the pandemic, some states have implemented “COVID-19 Rules” for how taxes should be handled for remote workers. Each employer must look at its own situation as it differs state-to-state.
Additionally, states have different labor and employment laws, so employers must take a look at the other state’s employment laws to ensure that it is adhering to the proper things, such as state laws concerning unemployment insurance and workers’ compensation. In fact, employers must obtain workers’ compensation in the state in which their employee is working.
Employers Given Much Discretion
We are still living through an unprecedented time – at least in our lives. Many things are left in a gray area for employers to decide. The decision as to whether to allow an employee to work from a remote location is up to each employer and is dependent upon every specific situation.
That’s why any and all remote work arrangements should be thoughtfully considered before allowing for any official decisions. Since there are so many different state laws involved, it’s in your best interest to consult with a knowledgeable and experienced Illinois Employment Law Attorney who can help to ensure that you are properly meeting all requirements.
The Deerfield Employment Law Attorneys at S.T. Legal Group Can Help
If you are dealing with employees who wish to work remotely out of state, and wish to ensure that you are following the applicable laws, the attorneys at S.T. Legal Group can help. To learn more, or to schedule a consultation, contact us today!