Employees Who Live and Work in Different States

It is not uncommon for a worker to live and work in two separate states. When this happens, the Pavillio Payroll defaults to collecting the following information:

  • Employee withholding tax setup information in both states

  • Employer withholding tax setup information in both states

  • Employer unemployment tax setup information for the work state only

For example, if a worker lives in Michigan and works in Minnesota, we collect the following information:

  • Employee withholding tax setup information for Minnesota and Michigan

  • Employer withholding tax setup information for Minnesota and Michigan

  • Employer unemployment tax setup information for Minnesota only

This ensures that the employer is remaining compliant and paying taxes to each required tax agency.

Other Resources

Reciprocal Tax Agreements