Question

A lot of companies have employees in multiple states. What additional issues does that create in the payroll system?

Answer 1

The various issues which have to be faced by the HR department of a company who have employees in multiple states are :

1. The payroll rate of the different states are different and also there is a conflicting views towards the overtime laws.
2. For multiple state employees, the HR has to make additional expense on this living standards and sizable part of the budget has towards rent, utilities and furnishings.
3. The vacation or terminal home-town holidays records has to be maintained which includes due permission, the contract terms and consequences on overlapping.
4. Medical expense and the insurance expense has to be made on extra extent, so that there do not come-up any casualties especially towards out-station employees.
5. The tax structure of the different states are different, so tax deductions should be accordingly.
6. The payroll checks have to be sent to the employees to their native residence, which requires additional arrangement and expenses.

Thus, the HR department has to be on their tows to handle any new issue related to the employees which belongs to the other state because their could be some more issue which hasn’t risen upto now.