Multi State Payroll Taxation

Remote Employees, Business Travelers & Cross-State Withholding: Where Should You Withhold in 2026?

An employee lives in one state, reports to an office in another and works remotely from a third location. Where should payroll withhold taxes? What happens when an employee works in another state for only a few days? Does a reciprocity agreement eliminate withholding—or merely change which form the employee must complete?

Could one remote employee create a new payroll-registration, unemployment-insurance or business-tax obligation for the employer? For today’s remote, hybrid and mobile workforce, the employee’s home address is no longer enough to determine payroll taxation. State rules can depend on residency, domicile, the physical location where services are performed, reciprocity agreements, state-specific withholding thresholds and “convenience of the employer” rules. State unemployment insurance and local payroll taxes may follow an entirely different analysis. A mistake can result in withholding taxes for the wrong state, double withholding, employee complaints, amended returns, penalties, interest and unexpected registration obligations.

This practical webinar will help payroll and HR professionals determine where wages should be reported and taxed when employees live, work remotely or travel across state lines.

Why Multi-State Payroll Is So Difficult in 2026

There is still no single nationwide rule that tells employers when a traveling or remote employee becomes subject to another state’s income-tax withholding requirements.

Depending on the jurisdiction:

• Withholding may begin on the employee’s first day of work in the state
• A day-count or earnings threshold may apply
• A reciprocity agreement may permit withholding only for the employee’s resident state
• Remote work may be taxed under a “convenience of the employer” rule
• Local city, county or municipal taxes may also apply
• The applicable state for unemployment insurance may differ from the income-tax state
• An employee’s presence may trigger employer registration or nexus considerations

Payroll teams must therefore know not only where employees live, but where they are actually performing services.

Real-World Situations This Webinar Will Address

• An employee lives in New Jersey but works for a New York employer
• A remote employee moves to another state without notifying payroll
• An employee works from a vacation home for several weeks
• A salesperson travels through multiple states during the year
• A hybrid employee divides the week between home and an employer office
• An employee lives in one reciprocity state and works in another
• An executive crosses a state’s withholding threshold during business travel
• A company hires its first employee in a state where it has no office
• Income-tax withholding and state unemployment insurance point to different jurisdictions

After This Webinar, You Should Be Better Prepared To

• Identify the correct state or states for employee withholding
• Distinguish residency rules from physical work-location rules
• Apply reciprocity agreements and nonresident certificates correctly
• Recognize convenience-of-the-employer situations
• Track remote and traveling employees before obligations are missed
• Determine the appropriate state for unemployment insurance
• Identify potential local-tax and employer-registration requirements
• Reduce incorrect withholding, amended filings and employee complaints
• Create a more defensible multi-state payroll process

Stop Relying on the Employee’s Home Address Alone

The most important question in multi-state payroll is often not where the company is located—or even where the employee lives—but where the employee was physically working when the wages were earned.

Join Dayna J. Reum for a practical, case-based session that will help you recognize multi-state payroll exposure, ask the right questions and apply a more consistent withholding process.

Register now and prepare your payroll team to manage remote, hybrid and traveling employees with greater confidence.