How to Hire a Remote Employee in Another State

The checklist

What to set up before a remote employee in a new state starts
Task	Where	Notes
Unemployment insurance registration	The state's unemployment or workforce agency	Each state runs its own program funded mainly by employer taxes, with its own triggers. Florida, for example, makes you liable at $1,500 in quarterly payroll or one employee on any day in 20 weeks.
State income tax withholding	The state's tax or revenue department	Only if the state taxes wages. Some states have their own withholding form, such as California's DE 4.
Workers' compensation	Your insurer and the state	Rules are set state by state. Confirm your policy covers employees in the new state. In Texas, coverage is optional for most private employers, but employers without it must tell the state.
New-hire report	The state where the employee works	Within 20 days of hire under federal law, sooner in some states. Or register as a multistate employer and report everyone to one state.
Business registration (foreign qualification)	The state's Secretary of State	Often required. The Small Business Administration lists having employees working in a state as one sign you are doing business there.
Notices and posters	Federal and state labor agencies	The EEOC says its notice can be posted electronically for remote workers who do not visit your workplace. Add the new state's required notices.

Whose laws apply

Employment laws generally follow where the employee does the work, not where your company is based. When federal and state law both apply, the Department of Labor says the employee gets the higher minimum wage. Plan on following the employee's state for overtime, final pay and leave as well, and check each rule for that state rather than yours.

Pay transparency laws show how this works for remote jobs. New York City covers jobs done from an employee's home in the city. Maryland covers jobs performed at least partly in Maryland. Massachusetts covers remote roles whose primary place of work is Massachusetts. See pay ranges in job posts.

Pay, leave and notices follow the employee's state

Once someone works in a new state, check these rules for that state before their first day:

Minimum wage, overtime and exempt status.
Paid sick leave and paid family leave, including any payroll contributions.
Written notices at hire. California, for example, requires a written notice at hire for most non-exempt employees under Labor Code section 2810.5, covering the pay rate, payday, employer details, the workers' comp carrier and paid sick leave rights.
Final pay and unused PTO payout rules, which can differ sharply from your home state.
Required labor law posters, delivered electronically if the person never visits an office.

The state pages cover these in one place: California, New York, Texas, Washington, Massachusetts, Colorado, Illinois, Florida, New Jersey and Georgia.

Form I-9 for someone you never meet

The Form I-9 deadline is the same for remote hires: Section 1 by the first day, Section 2 within three business days. You or an authorized representative must examine the documents. If you take part in E-Verify and are in good standing, USCIS allows a DHS-authorized alternative procedure to examine documents remotely by live video. If you offer it, apply it consistently, either to everyone at a hiring site or to all remote hires, and never based on citizenship or immigration status. See Form I-9 and E-Verify.

Common mistakes

Running the first payroll before registering for unemployment insurance and withholding in the new state.
Reporting the new hire to your home state instead of the employee's work state without registering as a multistate employer.
Assuming your workers' comp policy already covers a new state.
Applying your home-state handbook to everyone, for example on PTO payout or sick leave, when the employee's state sets a different rule.
Forgetting that an existing employee who moves to a new state brings these same steps with them.

Common questions

Do I report a remote employee's hire to my state or theirs?

To the state where the employee works. If you have employees in several states, you can register with the federal Department of Health and Human Services as a multistate employer and report all new hires to one of those states.

Does hiring one remote employee mean I have to register my business in that state?

Often, yes. The Small Business Administration lists having employees working in a state as one of the signs that you are doing business there, which usually means foreign qualification with the Secretary of State. Check that state's rules.

Which state minimum wage applies to a remote employee?

The one where the employee works. When federal and state rates differ, the Department of Labor says the employee is entitled to the higher rate.

How MambaHR handles this

MambaHR keeps your employee records, including where each person works, and answers federal and state employment-law questions with the law cited, sending unclear cases to a person. When someone joins from a new state, it sends the new-hire forms, starts the Form I-9, and turns the hire into a payroll change for your payroll provider or for Deel-managed payroll (Powered by Deel).

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Sources

Last reviewed October 2, 2026. This page is general information, not legal advice. Laws change and exceptions apply, so check the sources above or an employment lawyer before you act on a specific case.