Do you want to know the real reason companies offer a remote role but only for certain areas? Because it’s a lot of work. For every state the company has to be registered for: ➡️ Withholding taxes (if applicable) ➡️ Unemployment insurance ➡️ Disability and Paid Family Leave (if applicable) ➡️ Worker’s comp (some states require state registered WC) ➡️ Big city taxes 💡 It’s even more complicated when employees are hybrid in big cities. ‼️ In most cases, these require separate websites/accounts for each part. If you have a payroll company that manages these, you’re still required to manually update any changes in tax rates to the payroll company. You’re typically also responsible for manually paying the difference owed when changes are initially implemented, too. But don’t forget, they’re still government websites so sometimes your business information just randomly drops from your website profile. So I get your frustration, trust me, I do. But if you’ve ever worked with the government, you get why companies might want to keep work locations to a manageable limit until they have capacity to expand further. Hope this helps, I haven’t seen anyone else talk about it 🤷🏽♀️
It is an ongoing battle. Sometimes hiring managers conveniently forget. Sometimes job seekers get irate because of differences in opinions over the definition of remote. Some get even more upset when companies refuse to hire people who reside in certain states (not unlawful). The issue will not go away.
Gary Steensgard
2mo
Yes! You said the details that no one either knows or wants to acknowledge as real hurdles!
Jeremiah Hardy
2mo
These are great points. People tend to look at the surface without looking at the bigger picture. This doesn't just happen with remote workers, it happens with many things. You do an excellent job breaking down this particular issue.
Michael Quinn
2mo
It is a nightmare having to register for all of those states, file taxes in all those states, and deal with all the states...many still managing things through mail and telephone.
Jerry Welsh
2mo
At one time our payroll and benefit company said, hire someone in PA and get a new provider? Guess taxes etc. are pretty complicated.
Desiree E.
2mo
Great insights! Most people don't understand how much work it really is, but this will help move the needle.
Dori Pelley
2mo
Thank you for sharing that!! I've actually heard that exact question asked, so I will be sharing your post!
Michael Knowles
2mo
This does help. When I went remote I stayed where I was and I realize there are complexities for the company involved in relocating. And, since I support a large scale manufacturing operation I also like to be close enough that I can go in and look at problems and talk to people in the factory if needed. You can't beat face to face with the people out there on the assembly line for understanding issues. My view of it is be remote but not too remote.
John Wheeler, Jr
2mo
Alexiss Storm Tallant, I wish more people understood the compliance and legal requirements businesses have with having remote workers. Some businesses are also getting tax incentives, which are there to help boost local tax revenue for that local area, not subsidizing hiring workers out of state. Having worked in payroll and HR sales, even if these functions are outsourced the employer is still responsible taxes are withheld and paid. Employee benefits also vary from state to state.
Talent Acquisition Manager and Senior National Recruiter
2moWhy do we need to see your face for a post about remote work?