Remote Workforce Compliance
Nexus Matrix — Exposure Calculator
Your HQ / Domicile State
Annual Revenue ($)
Used for economic nexus threshold checks
Avg. Employee Salary ($)
Estimates per-employee SUTA cost by state
Remote Employee Locations
Add your HQ state and at least one employee location to see your exposure analysis.
Reciprocity agreements allow employees who live in one state but work in another to pay income tax only to their residence state. Employers must still withhold correctly and employees typically file a certificate of non-residence.
Trailing nexus means a business may remain liable for tax obligations in a state for a defined period after its activity drops below the nexus threshold. Enter the date activity ceased to calculate your exact liability end date.
Alaska Statewide Transit & local taxes
Alaska has no state income tax, but several municipalities levy local income taxes. Juneau levies a 2% local income tax on wages earned within city limits. Remote workers based in municipalities must have local withholding configured separately. Additionally, employers must pay into the Alaska SUTA (wage base: $49,700 for 2024; new employer rate: 2.37%). There is no state SDI.
New Jersey Multiple parallel withholdings
NJ is uniquely complex: employers must withhold for NJ state income tax, NJ SUI/SDI (employee share: 0.425% on first $42,300), NJ Family Leave Insurance (FLI) (0.09%), and NJ Workforce Development (WD) and Health Care Subsidy (HCS) assessments. NJ applies a "convenience of employer" rule: if a non-NJ employee works remotely for their own convenience (not employer necessity), NJ may still assert the wages are NJ-sourced.
Pennsylvania Local EIT & LST complexity
PA has 3,200+ taxing jurisdictions. Employers must withhold both PA state income tax (flat 3.07%) and the applicable Earned Income Tax (EIT) for the employee's municipality. PA also imposes a Local Services Tax (LST) (up to $52/year) collected per worksite. PA has reciprocity with 6 states (IN, MD, NJ, OH, VA, WV).
New York Convenience of employer rule
NY enforces an aggressive "convenience of employer" doctrine: any day a non-NY employee works remotely is treated as a NY workday unless the employer maintains a bona fide office outside NY and the remote work is for employer necessity. This is one of the most aggressive positions in the country and has been upheld in litigation.
Oregon Statewide Transit Tax (STT)
Oregon imposes a Statewide Transit Tax of 0.1% on wages earned in Oregon, regardless of employer location. Remote employees working in Oregon from a non-OR employer trigger this obligation. The Portland Metro and Multnomah County impose their own SHS and PFA income taxes — both employee-side, but employers must withhold if they know the employee resides in the taxing district.
Washington No income tax + Cares Fund
WA has no state income tax, but employers with WA-based employees must register for and remit WA L&I (workers comp), WA PFML, and WA Cares Fund (long-term care; 0.58% employee-side, but employer must collect). The Seattle payroll expense tax also applies to businesses with $8.5M+ in Seattle payroll.
SUTA wage base comparison — selected states
| State | 2024 SUTA wage base | New employer rate | Notes |
|---|---|---|---|
| HI Hawaii | $56,700 | 3.0% | Highest wage base in US |
| WA Washington | $68,500 | 1.0% | Also assess PFML separately |
| OR Oregon | $52,800 | 2.6% | Plus OR STT withholding |
| NJ New Jersey | $42,300 | 2.8% | Employee-share SDI/FLI added |
| NY New York | $12,500 | 4.025% | NYC has additional local withholding |
| TX Texas | $9,000 | 2.7% | No income tax; SUTA only |
| FL Florida | $7,000 | 2.7% | No income tax; SUTA only |
Your personalized compliance roadmap is generated based on the employee states you've entered in the Exposure Check tab.
Add employee locations in the Exposure Check tab to generate your roadmap.