State Registration

[Irfan Tanveer]

State Registration

Hi
We are registered in several states. The problem for registration in multiple states is that we use to get more notices from states resulting in extra time and effort. My question is why or how necessary is it to register in the state where my employee is working? Our business is to provide services not goods. I seek your expert advice on it.

#251150 Reply

[Laura HandrickMember]

Hi Irfan,
It’s a good question, and yes, more states means more paperwork!
States require registration so they know who is working in their state. This serves to ensure state taxes are paid, and unemployment is provided. One way that many small businesses keep the complexity down is to use a payroll provider who does all this for you. Each time a new worker is hired, they notify the state. They then deduct and pay the state taxes, and they also stay aware of state labor law changes.
This prevents you from making a workforce mistake, getting fined or being sued by employees. We recommend Gusto as best for small business. https://fitsmallbusiness.com/adp-vs-paychex-vs-gusto/
I’ve attached a few articles to help you understand what’s required.
Best!
Laura
HR Staff Writer, SPHR, MAEd
https://fitsmallbusiness.com/employer-payroll-taxes/
https://fitsmallbusiness.com/state-tax-website/
https://fitsmallbusiness.com/new-employee-orientation/

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