Thanks to the COVID pandemic, the idea of working from home is no longer unusual. However, while working from home has been largely a success, there are issues on the company’s side of the table that many employees aren’t aware of. Just because a job can be done remotely 100% of the time, doesn’t mean it can be done from anyplace the employee chooses. Each state's income and withholding tax requirements differ for out-of-state individuals, as do the laws on business registration, which depend on several factors, including the nature of the business. It’s not just taxes, though. Employers may also be liable for workers compensation insurance and unemployment insurance in the state where the employee is working. Another thing to consider is that while many employers are fine with not laying eyes on employees every single day, they may still want to have regular in-person meetings. If your office is in Georgia, but you decide to move to California, that could be a problem. You might be tempted to make the move even if your company forbids it. After all, how would they know that you left town? You'd be surprised. Employers find out this sort of thing via social media, where people forget that their colleagues and employers often have access to their posts. That kind of deception could be grounds for termination. Lying about your location could also cause the business to improperly file their taxes, in which case they may be liable for tax fraud. Before you decide to relocate because you work remotely, be sure that the terms of your employment allows you to do so, and if not, stay put or find a new job.
