Remote Workforces Create New Employment Challenges for Employers

Employers should be aware of the extra legal and payroll obligations that a remote workforce creates, payroll professionals and consultants said May 12.

Some additional payroll obligations include state and local taxes, expense reimbursements, and business registration.

State and Local Taxes

Employers should determine a remote employee’s tax obligations in a new jurisdiction or state, said Mindy Mayo, a managing director for KPMG LLP. Municipalities may create a new local payroll or income tax that affects remote employees to increase their revenues.

“You really need to research what other taxes you are going to be subject to when you go ...