Milestone 04
Hiring in a new state
One employee in a new state, even a remote one, can bring new tax accounts, new insurance, and a different set of labor laws. Here’s what changes.
Your growth path
Each step has a guide
What you need now
- State tax registrations. Withholding (if the state has an income tax) and unemployment insurance accounts in the new state.
- Workers’ comp for that state. Confirm your policy covers employees there.
- New-hire reporting in that state. Each state runs its own registry.
- That state’s labor rules. Minimum wage, paid sick leave, final paycheck timing and required notices can all differ. Some cities add local taxes too.
- Ask about registering your company there. Having employees in a state can require registering your business to operate there. Your accountant can confirm.
What can wait
- Opening an office. Remote employees are covered by the steps above.
- A second payroll provider. One provider, or one PEO, can handle every state you hire in.
Coming next: This is the point where many companies move to a PEO, because PEOs already have the tax accounts and compliance in place in most states.
Guides and tools for this stage
When does a growing company need a PEO?
Five signs it's time, what it costs, and when it isn't the right fit yet.
Do I need a PEO? Take the 2-minute quiz
Six questions. We'll tell you whether a PEO makes sense yet, or what to look at instead.
Get matched with a provider
Tell us about your company. A person reviews it and suggests one or two providers that fit.
How we get paid. GetAStart is free for you. When a business we introduce signs up with a provider, that provider may pay us a referral fee. It never changes the price you pay.
Not sure where to start?
Answer six quick questions and we’ll tell you whether a PEO makes sense for your company yet, or what to look at instead.