How Syndeo Handles Multistate Tax & Payroll Compliance

Hiring across states unlocks growth, but it also triggers a web of rules for payroll, taxes and HR compliance. Every jurisdiction has its own requirements for registrations, tax withholding, unemployment insurance, leave laws, minimum wages and more. Missing a step can mean fines, delayed payroll or unhappy employees.

Syndeo’s team takes that burden off your plate. After our clients do their business registrations in the working states, we set up tax accounts, process payroll accurately across jurisdictions and stay on top of changing rules so you don’t have to. You focus on hiring the right talent. We make sure every paycheck is right and every filing is on time.

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Multistate Compliance — Explained Simply

If your employees work in multiple states or work in a state outside of where the business is located — whether they live there, are temporarily assigned or work remotely — you must follow the tax and payroll rules of the state where the work is performed. The standard rule is that withholding taxes are paid in the state where the work is done. Even short-term or temporary work can trigger obligations. Because each state handles payroll taxes, unemployment insurance and HR rules differently, compliance isn’t one-size-fits-all. That’s why planning ahead matters.

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Why It’s More Common and More Complex Now

Remote work accelerated during COVID and has stuck. Employers are hiring the best talent regardless of location, which means more states in play. That creates additional complexity:

• Different minimum wage and paid leave standards by state
• State and local income tax withholding rules that vary by jurisdiction
• Unemployment insurance setup, rates and claim handling for each state
• Administrative expansion from opening and closing accounts as employees move

Government agencies still rely on paper forms and physical signatures in many cases, so lead time is essential.

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Common Pitfalls We See

• Last-minute hires without time to set up tax accounts before payroll
• Misunderstanding state rules for minimum wage, leave and HR requirements
• Underestimating registration timelines, especially when notarization or mailing is required
• Unused or forgotten accounts when turnover is high or employees relocate

The risks are real: fines, penalties, audits, delayed payroll and frustrated employees, which are all avoidable with proactive planning.

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How Syndeo Keeps You Compliant, End to End

When you hire in a new state, we move quickly and handle the heavy lifting.

1) New State Setup‍

• Prepare and collect power of attorney and required signatures
• Complete and submit applications for state and local withholding and unemployment insurance accounts
• Track and follow up with agencies until accounts are established
• Research and document applicable HR and payroll rules including PTO, paid medical leave, minimum wage and more

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2) Unemployment Insurance (SUI)

• Establish SUI accounts and handle ongoing requirements
• Coordinate with HR to manage responses for unemployment claims

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3) State and Local Withholding‍

• Configure withholding based on each jurisdiction’s rules
• Ensure proper setup for local taxes where applicable

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4) Accurate Payroll Across Multiple States

• Use PrismHR, our Human Resources Information System (HRIS) to attribute hours to where the work occurs
• Calculate withholding by location each pay period
• Ensure proper taxes are being calculated based on employee’s resident state and any worksite locations

Bottom line: if hours are linked to the correct location, PrismHR calculates and withholds accurately, and we validate the results.

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5) Staying Current with Changing Rules

• Monitor state notices (electronic and physical notifications)
• Use tax software that helps monitor pay schedules, tax return due dates and formatting requirements
• Reference a centralized rules database to keep state-by-state guidance current

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What We Need From You to Start

To get you compliant fast, we’ll ask for:

• The work location address (business or home office)
• The start date for the employee

Once we have those, our team takes the reins. We notify internal teams for system setup, complete the necessary forms and send everything for signature and return. After that, we work with the jurisdictions to establish payroll tax accounts and process filings.

Note: Client handles the business registrations beyond payroll taxes may require your legal counsel. Syndeo handles payroll tax-related items end to end.

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Real-World Scenarios We Navigate

Temporary out-of-state contracts: We help evaluate the compliance impact, set up necessary accounts and define when temporary work triggers tax obligations.‍

Remote hires during and post-COVID: We’ve guided clients through rapid multistate expansion, helping plan requirements before offers go out.‍

U.S. only: We process payroll taxes for the 50 states and Washington, D.C. If you need help outside the U.S., we can connect you with a trusted partner, G-P.

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Hire Anywhere with Confidence

Multistate payroll and tax compliance doesn’t have to slow down your growth. Syndeo’s HR, payroll tax and compliance experts manage the setup, filings and updates for you. You get accurate payroll, timely payments and peace of mind — without the administrative headache.

Ready to expand in a new state? Share the work location address and start date with your Syndeo team, and we’ll get your accounts established so you can onboard your out-of-state new hires on time.

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