So, you've got employees working in multiple states.
First, that's great—your business is growing, your team is expanding, and you are bringing in the right people, no matter where they live. That's exciting. But also, a bit of a handful when it comes to payroll.
Suddenly, you're not dealing with just one set of tax rules anymore. Every state has its own way of doing things. Some don't tax income at all. Others have layered rules—state tax, local tax, special rates based on where someone lives or works. When your employee lives in one state and works in another, things get more confusing.
Depending on where they are, you might need to withhold taxes based on their work location, their home address, or both. Some states have agreements to avoid double- taxing people. Some don't. You have to check.
There's also SUTA (state unemployment insurance) and minimum wage. Every state handles those differently. Even things like filing deadlines and deposit dates aren’t the same everywhere. If someone moves, even just a few hours away, that could mean a whole new set of payroll rules, too.
It adds up, and if you’re trying to handle it all manually, it can get overwhelming fast.
That’s why the Multi-state payroll feature in Zoho Payroll exists. It’s built to handle these layers—calculating taxes, adjusting for work and home locations, keeping up with local laws—without you needing to dig through every state's payroll guide.
Just a few clicks and it’s sorted.
Try our multi-state payroll feature and see how easy staying compliant can be.
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