Thrive Blog

Dec 15, 2021 ·

How To Hire Out Of State Employees

As a result of the pandemic and the increasing number of companies making their business digital, more employees are looking to work remotely to save on transport costs and improve quality of life. This creates a logistical challenge for many employers who now must handle a workforce asking to operate from different locations.

Large corporations have big enough teams to handle this change, but it can be a bit more complicated for small businesses that want to ensure their workers are content. The good news is that there is an efficient and easy way to hire out-of-state employees or move existing workers to an out-of-state location.

Note that this method enables your employee to remain on the payroll with all the same benefits instead of working as a contractor.

Utilizing the right tools

The answer to hiring out-of-state employees can be broken down into a two-step process that will require two different, easy-to-use online tools. To begin with, you’ll need to use:


If you’re not already familiar with Gusto, you should seriously look into the benefits of its services. The company provides a cloud-based HR platform that enables you to handle payroll and benefits efficiently. You’ll find that once you input the details of the out-of-state worker, the platform will automatically notify you that the employee is not based in your state.

This is because there are tax implications to working for a company that isn’t based in your location. Luckily for us, there is an easy solution to the problem.


To circumvent this issue you’ll utilize Corpnet, a platform that makes business filings easier and faster. The way it helps is that you make the out-of-state employee’s home address one of your business addresses. So, for example, if you’re based in California, but you’d like to hire someone in New Jersey, you’d simply add their New Jersey address as one of your business locations.

The best part is that Corpnet will handle the entire process of setting up a new business location for a reasonable fee. You’ll also be set for the whole state, so if you hire anyone else in New Jersey in the future, you’re already covered and won’t need to go through this process again. You can also repeat this for however many states you need.

Once you have all the documentation from Corpnet, you can update the employee’s information on Gusto, ensuring that the worker receives correct payment and the appropriate taxes are paid to the respective state.

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