Author Topic: Remote working from home--and STATE tax/payroll issues.  (Read 1996 times)

Offline Dottonedan

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Remote working from home--and STATE tax/payroll issues.
« on: February 20, 2023, 02:45:17 PM »
So, Working remotely is a growing thing. Proven to work out well.  Many of you know, I’ve been looking to work for a company that is at my pay range and has Benefits that will enable me to work from home as a color separator.  All are totally fine with me also working freelance after hours.


I’ve had 3 potential bites last month, and 2 going on right now. But each time, I’m running up against a ALABAMA STATE issue for remote workers.
It’s like Alabama doesn't want anyone living in AL to be working outside their state!  I first thought it was their state issue. These HR people don’t really want to go into detail as to what the issues are, but the gist of it is something about some states not taking Payroll taxes out...and other do, etc. And they don’t want to upset their Tax /payroll processes for one person. Me.


3 out of the 5 companies that were/are interested already have a staff of 2-5 artist working from home and have been before Covid. None tho, have been living in Al. These companies are in states like Illinois, Pennsylvania, Michigan, etc.   For one Co. I was shown a list of states that they do hire from and it was nearly 44-45 states. There are apparently about 5-6 states that companies don’t hire from (at all). Specifically for the Tax and Payoll issues that come with it DANG IT!


This most recent one, already said Yes to hiring me, but then HR stepped in with this State thing again. It’s still up in the air so far, but I feel they are going to crush it again. I said "Hey, I live 20 min from the TN state line and my Mother-In-law lives just 25 min from me. I can set up residence there". But that causes HR to raise some eyebrows and frowned on it. These shops are very large and very corporate in operation.  These companies want me, but I can’t get them to work with me on the Alabama thing.


Just ranting really.  I need to see if there are any loopholes.  From what I’ve read so far, During COVID, there was a release on this Issue that allowed people to live in Al and work in another bordering state. But since Covid ended, it was put back into effect.  What the HECK!
« Last Edit: February 20, 2023, 02:50:19 PM by Dottonedan »
Artist & Sim Process separator, Co owner of The Shirt Board, Past M&R Digital tech installer for I-Image machines. Over 28 yrs in the apparel industry. Apparel sales, http://www.designsbydottone.com  e-mail art@designsbydottone.com 615-821-7850


Offline screenxpress

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #1 on: February 20, 2023, 05:34:54 PM »
Maybe you could set up Corp billing to Your S-Corp.......for contract services........and be Your S-Corp employee in AL

Check that possibility out with a good Tax Accountant or Tax Attorney to eliminate the 'remote worker' status.

Obviously that won't work well if you want/need a position with benefits.

An S-Corp will add some additional paperwork to file at tax time (and Quarterly).

You'll have to decide what you can live with...or without.

« Last Edit: February 21, 2023, 01:36:21 AM by screenxpress »
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Offline GraphicDisorder

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #2 on: February 21, 2023, 09:04:08 AM »
Our shop is in TN and is near VA/NC. I can speak from experience that different states create a whole new set of BS when doing Payroll. One of my employees moved out of TN into VA and it created enough drama I had to get with my payroll company more than one time to sort out how to deal with it differently than TN, its smooth now but honestly I would not hire another person in a different state from those at this point.
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Offline mk162

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #3 on: February 21, 2023, 10:26:41 AM »
It would probably be easier to 1099 them.  Especially if they are remote and using their own computer to work from.  I'd of course ask our accountant and payroll company before assuming this is correct.

Offline Dottonedan

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #4 on: February 21, 2023, 12:12:09 PM »
It would probably be easier to 1099 them.  Especially if they are remote and using their own computer to work from.  I'd of course ask our accountant and payroll company before assuming this is correct.




I may go that route if they will agree. It’s a shame because this Co has a great benefits package. 401k, Eye, Dental, Life, Health, 2 wks paid vaca to start, Sick days, Personal days, (I Hardly ever use sick or vacation days but nice to be available if I need them). As a full time employees, they even furnish you with a brand new computer/artist work station. (even though I just upgraded my own). All at great rates because of their size. I’d have to continue with my own benefits that are currently expensive even for just myself. As a 1099, I would use my own equipment. That doesn’t really matter to me at all. It’s just interesting to come across a company that really knows the minute details of (work from home) work by textbook definition of full time and 1099.
Artist & Sim Process separator, Co owner of The Shirt Board, Past M&R Digital tech installer for I-Image machines. Over 28 yrs in the apparel industry. Apparel sales, http://www.designsbydottone.com  e-mail art@designsbydottone.com 615-821-7850

Offline Dottonedan

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #5 on: February 21, 2023, 03:10:45 PM »
So, I just got the word. It seems this Co. is good with me living in TN and working remotely for them but Not Alabama. They have TN Titans licensing and stores. So they are already established with employees there. That works! I’ll be making a move about 30 min away from where I’m at now to getting a residence in TN here shortly. I’ll be full time with this Co. in a few wks.  Very happy with this move! Right up my skill set alley. It may be the final company I work for hopefully.
Artist & Sim Process separator, Co owner of The Shirt Board, Past M&R Digital tech installer for I-Image machines. Over 28 yrs in the apparel industry. Apparel sales, http://www.designsbydottone.com  e-mail art@designsbydottone.com 615-821-7850

Offline mk162

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #6 on: February 22, 2023, 08:44:30 AM »
So, I just got the word. It seems this Co. is good with me living in TN and working remotely for them but Not Alabama. They have TN Titans licensing and stores. So they are already established with employees there. That works! I’ll be making a move about 30 min away from where I’m at now to getting a residence in TN here shortly. I’ll be full time with this Co. in a few wks.  Very happy with this move! Right up my skill set alley. It may be the final company I work for hopefully.

Fantastic!!  Congrats. 

Offline GraphicDisorder

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #7 on: February 22, 2023, 09:31:33 AM »
Congrats.
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Offline 3Deep

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Re: Remote working from home--and STATE tax/payroll issues.
« Reply #8 on: February 22, 2023, 11:40:46 AM »
Dan, Alabama has and always will be late to party, my son had remote jobs line up after college so I know what your going through in this state.
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