Hiring Out of State

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Joined: Tue Oct 26, 2010 2:05 pm

Hiring Out of State

Postby JasonC » Tue Oct 26, 2010 1:23 pm

Hey, I'm new here. So hey there everyone.
Well, anyways I have a specific question with regards to hiring someone from out of state.
We are a Virginia Based business but fully and legally incorporated in Delaware for some obvious legal advantages.
Recently, one of our employees moved to Arizona but we still want to use him as a Tele-commuting employee.
So here's the question: Do we need to have a legal business presence if we're hiring him as a telecommuter? What about Sales/Use Tax, Witholding Tax, Unemployment Numbers and Worker's Compensation?
What exactly would be required to hire him as a full time telecommuter for the business?
Thanks everyone in advance!

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Joined: Sun Dec 07, 2008 5:00 am

RE: Hiring Out of State

Postby baloga » Tue Oct 26, 2010 1:52 pm

You should speak with your tax advisor about this. By the very fact that you have an employee based in Arizona, whether they are telecommuting or not may create nexus. What that means is that you may have to file various forms, pay fees, etc. with that particular state in which the employee is located.
Unfortunately, it isn't one size fits all. Every state will have its nuances as to what creates nexus or not.
Ed Baloga, CPA / MBA Principal CFO Baloga Associates ebaloga@baloga-associates.comwww.twitter.com/edbaloga

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