Burkland - Start Smart, Scale Fast
 
  1. What are employee state registrations?
  2. Do pay transparency laws apply to startups?
  3. What is a PEO?
1.

What are employee state registrations?

Employee state registrations are the process of registering an employee with various state agencies. If an employee lives in, or moves to, another state and works remotely for your startup, legally that means that your company has a presence in that state. In many states, this is technically considered a nexus, which means you are required to register the company and employee in that state and pay the appropriate employment taxes. At the end of the year, your company will need to file the corporate income tax for that state, and a sales tax if a product was sold there.

2.

Do pay transparency laws apply to startups?

Pay transparency laws vary by state. At least 17 states currently have some form of pay transparency laws in place, and in several of those states, the laws apply to startups with just 1 or more employees.

3.

What is a PEO?

A Professional Employer Organization (PEO ) is an outsourced Human Resources partner for businesses. PEOs manage services like payroll and related taxes, benefits and workers compensation plans on behalf of their clients. PEOs are popular with startups because they offer the convenience of outsourcing along with cost savings through economies of scale.