US federal-level reference skill providing the 50-state at-a-glance payroll matrix covering income-tax withholding registration, quarterly return forms and due dates, SUTA wage base and rate ranges, new-hire reporting agencies and 20-day deadlines under §453A, state disability and paid family/med…
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Built by Michael Cutajar and the OpenAccountants team. Written from the official sources it cites.
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Every figure is drawn from this Guide and cited to its source.
Identify each state of employment
Based on where the employee physically performs services, not where the employer is domiciled. The seven convenience-of-employer states (NY, NJ — limited, CT, PA, NE, AR, DE) may reach remote workers even outside the state.unsure
For every employment state, check three things
Income tax withholding registration (Column 3); SUTA registration in the state where wages are localized under the four-part FUTA test (26 USC §3306(j)); New-hire reporting within 20 days of hire (Column 6)26 USC §3306(j)
For PFML / SDI mandates
If the state is in Column 7 or 8 as "Y," the employer must register with the state insurance agency and remit contributions (employer share, employee share, or both).unsure
For local taxes
If Column 9 flags "Y," consult the city/municipality directly. PA Act 32 employers must capture the employee's PSD code (political subdivision code) at hire.unsure
Cross-reference Section 5
Cross-reference Section 5 for the state-by-state quirks before finalizing the payroll setup.unsure
Multi-state employer
A "multi-state employer" for new-hire reporting purposes is one with employees in two or more states who elects to report all new hires to a single state. The election is filed with HHS Office of Child Support Services. All other employers must report to each state where the employee works.42 U.S.C. §653a(b)(1)(B)
CA SDI rate
1.20%CA-EDD Form DE 9 / DE 9C
CalSavers retirement mandate
Any employer with 1+ employee that does not sponsor a qualified retirement plan must register and facilitate Roth IRA contributions. Deadline elapsed 12/31/2023 for all sizes.CalSavers
CA PIT top marginal rate
12.3% + 1% Mental Health Services Tax on income >$1M = 13.3% top marginalPIT brackets
DE 9 / DE 9C filing
Filed quarterly through e-Services for Business; due last day of month after Q-end. DE 9C is the wage-detail return; DE 9 is the contribution return.DE 9 / DE 9C
WTPA wage notice
Must be furnished at hire.Labor Code §2810.5
NYS-45 combined quarterly return
Combined quarterly return: state PIT WH + SUTA + MCTMT (where applicable). One form, four parts.NYS-45
Convenience-of-employer rule
If a NY employer permits remote work for the employee's convenience (not the employer's necessity), the wages are NY-sourced even if the employee never sets foot in NY. This rule cost out-of-state remote workers ~$1B+ in NY tax during 2020-2022. AUDIT FLASH POINT when onboarding a remote employee for a NY-based employer.TSB-M-06(5)I
MCTMT rate and threshold
0.34-0.60% on payroll where total quarterly payroll within the MCTD (12 downstate counties) exceeds $312,500. Self-employed have a separate MCTMT regime.MCTMT
NY PFL employee deduction
0.388% of wages capped at NYSAWW × 0.388%, remitted to the private DBL carrierNY PFL
NYC resident-only city PIT
3.078-3.876% graduated; employer must withhold for NYC residents but not for non-residentsNYC
Yonkers earnings tax
Resident (16.75% of NY state tax) and non-resident (0.5%) earnings taxYonkers
NJ paycheck line items requirement
Employee paychecks must reflect separate line items for: NJ SIT; NJ UI/HC/WD (combined); NJ Workforce Development Partnership Fund; NJ SDI (TDI) — employee portion; NJ FLI — Family Leave Insurance
NJ wage bases
SUI base ($43,300), TDI base ($165,400), and FLI base ($165,400) are different — payroll software must carry three wage bases. AUDIT FLASH POINT.
NJ-927 return
NJ-927 is the quarterly combined return.NJ-927
Residency Certification Form
Every employee completes the Residency Certification Form at hire, declaring: Resident PSD code (6-digit political subdivision identifier); Work-location PSD code; Resident EIT rate; Non-resident EIT rate (for work location)Act 32
PA EIT withholding rule
Employer withholds the higher of the two rates and remits to the work-location's Tax Collection District (one of 69).
LST — Local Services Tax
Flat $52/yr maximum, withheld in equal installments. If the employee works in multiple LST jurisdictions, the $52 cap is shared and the employee files for refund.
Ohio municipal income tax administration
~600 Ohio municipalities impose a local income tax (0.5-3.0%). Most are administered through one of: RITA (Regional Income Tax Agency) — ~330 municipalities; CCA (Central Collection Agency, Cleveland-based) — ~50 municipalities; Self-administered (Columbus, Cincinnati, Akron, Toledo, etc.)
20-day rule
Withholding rules under HB 110 (2021) and the 20-day rule: employer withholds for the work-location city for the first 20 days an employee works there, then switches to the principal-place-of-work municipality.HB 110 (2021)
Courtesy withholding
Employees who live in a city with a higher rate than their work city are entitled to a "courtesy withholding" of the difference, but it is voluntary for the employer.
School-district income tax (SDIT)
Separate school-district income tax (SDIT) withholding on Form SD-101 for ~190 school districts (paid by residents of those districts).Form SD-101
WA Cares Fund
0.58% employee-only payroll tax (no wage cap) funding a state long-term-care trust. Opt-out window closed 12/31/2022 for existing LTCi holders; very few are exempt now.WA Cares Fund
WA PFML
0.92% combined; employer share 28.57%, employee share 71.43% for 2025 (varies annually based on premium experience).WA PFML
No PIT
No PIT so employers register only with WA ESD for both unemployment and PFML.
TriMet payroll tax
0.8237% 2025: employers pay on wages of services performed within the TriMet district (Portland metro 3-county area). Filed on Form OR-OQ.Form OR-OQ
Lane Transit District (LTD)
0.79% on services performed in the LTD area (Eugene metro).
Statewide Transit Tax (STT)
0.10% employee deduction on all OR wages.
Paid Leave Oregon
1.00% on wages; employers with ≥25 employees split 40% employer / 60% employee.
OregonSaves retirement mandate
Phased in 2020-2023 for all employers without a qualified plan.OregonSaves
FAMLI rate and split
0.90% on wages up to SS base; 50/50 employer/employee split for employers with ≥10 employees; employee-only for employers <10.FAMLI
CO SecureSavings retirement mandate
Retirement mandate for employers with 5+ employees since 12/31/2023.CO SecureSavings
IL Secure Choice mandate
5+ employees, no qualified plan → must register and facilitate Roth IRA contributions.IL Secure Choice
Chicago Paid Leave & Paid Sick Leave ordinance
Effective 7/1/2024, layers on top of IL state ESST.
IL flat PIT rate
IL is flat 4.95% so withholding tables are simple, but local-equivalent obligations (transit fund, expense reimbursement under IL Wage Payment Act §9.5) are easy to miss.IL Wage Payment Act §9.5
MA PFML rate and split
0.88%: the only state-administered combined medical + family leave with employer/employee split that varies by employer size. Employers <25 EE pay 0.18% (employee-only for medical portion); ≥25 EE pay full 0.88% with employer covering 60% of medical / 0% of family.MA PFML
Millionaires Tax surtax
The 4% surtax on income >$1M (the "Millionaires Tax," Article 44) means high earners need additional withholding via Form M-4.Article 44
Rendered from the canonical facts model. General reference only — confirm with a qualified professional before acting.
This reference covers payroll obligations for employers with W-2 employees in any combination of the 50 US states plus the District of Columbia. Coverage areas:
Out of scope: federal Forms 941/940/W-2/W-3 (covered in us-form-941-940-payroll.md), federal §3401(c) statutory-employee classification, multi-state allocation methods (covered in us-multi-state-allocation.md), employer-sponsored retirement plans (covered in us-self-employed-retirement.md), workers' compensation insurance rates (a state-specific commercial-insurance matter, not a tax skill).
Audience: US CPAs, EAs, and payroll providers servicing multi-state employers. This skill is a quick-reference table; it is not a substitute for the state agency website on any given filing date.
No-PIT states (9) (3.2 No-PIT states (9))
| State | SUTA Agency | Special Notes |
|---|---|---|
| Alaska (AK) | AK DOL Employment Security | Employee SUI contribution 0.50% of wages (one of two states; NJ and PA are the others) |
| Florida (FL) | FL DOR — "Reemployment Tax" not "SUTA" | First $7,000 of wages |
| Nevada (NV) | NV DETR | Modified Business Tax (MBT) on payroll over $50K/quarter |
| New Hampshire (NH) | NH Employment Security | No PIT on wages; 4% tax on interest/dividends repealed for 2025 |
| South Dakota (SD) | SD DOL Reemployment Assistance | — |
| Tennessee (TN) | TN DOL Workforce Development | Hall Income Tax repealed 2021; unemployment-only |
| Texas (TX) | TX Workforce Commission (TWC) | Form C-3 quarterly |
| Washington (WA) | WA ESD | PFML + Cares Fund LTC mandate — see Section 5 |
| Wyoming (WY) | WY DWS | — |
These states have no personal income tax. Employers still owe SUTA, new-hire reporting, federal withholding, and (where applicable) workers' compensation and state-specific levies.
Paid-leave / SDI states (12 in 2025, expanding through 2026) (3.3 Paid-leave / SDI states (12 in 2025, expanding through 2026))
| State | Program | 2025 Combined Rate | Funding Split |
|---|---|---|---|
| California | SDI + PFL | 1.20% (employee only) | Employee 100%; no wage cap (SB 951) |
| New York | DBL + PFL | DBL: employer-funded private carrier; PFL: 0.388% | DBL employer; PFL employee |
| New Jersey | TDI + FLI | TDI: 0.23% EE + employer-rated; FLI: 0.33% EE | EE-heavy; TDI taxable wage base $165,400 |
| Rhode Island | TDI + TCI | 1.30% (employee only) | Employee 100%; wage base $89,200 |
| Hawaii | TDI | 0.50% (employee max) | Employee up to 50%, employer balance |
| Massachusetts | PFML | 0.88% | Split employer/employee per MA DFML schedule |
| Washington | PFML + Cares Fund | PFML 0.92%; LTC 0.58% | PFML split; LTC employee-only |
| Oregon | Paid Leave Oregon | 1.00% | Employee 60% / Employer 40% (employers ≥25) |
| Connecticut | CT Paid Leave | 0.50% (employee only) | Employee 100%; wage base = SS base |
| Colorado | FAMLI | 0.90% | 50/50 employer/employee (employers ≥10) |
| District of Columbia | DC PFL | 0.75% | Employer-only |
| Minnesota | MN Paid Leave (eff. 1/1/2026) | 0.88% projected | Split per MN DEED |
Local income tax states (8) (3.4 Local income tax states (8))
| State | Localities | Mechanism |
|---|---|---|
| Pennsylvania | ~2,500 municipalities & school districts | Act 32 EIT — employee residence PSD code controls |
| Ohio | ~600 municipalities | RITA, CCA, or city-administered |
| Kentucky | ~210 counties/cities | Occupational license fees |
| Indiana | All 92 counties | County tax based on residence as of 1/1 |
| Michigan | 24 cities | Detroit, Grand Rapids, etc. |
| Maryland | 23 counties + Baltimore City | Piggybacked on state withholding |
| Missouri | Kansas City, St. Louis | 1% earnings tax |
| New York | NYC + Yonkers | NYC resident tax; Yonkers resident & non-resident |
| Alabama | Several municipalities | Birmingham, Bessemer, Gadsden, Macon County, etc. |
| Delaware | Wilmington | 1.25% city wage tax |
| West Virginia | 4 cities | "City service fee" — flat dollar |
Column key:
THE BIG 50-STATE + DC TABLE (4. THE BIG 50-STATE + DC TABLE)
| # | State | PIT | WH Registration | Quarterly Return + Due | SUTA Base / Rates 2025 | New-Hire Agency | SDI | PFML | Local | Quirks |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | AL | Graduated 2-5% | Form COM:101 (My Alabama Taxes) | A-1 / A-6 monthly; A-3 annual recon. Quarterly liab <$1K | $8,000 / 2.7% new / 0.20-6.80% | AL DOL New Hire Unit | N | N | Y (municipal) | Birmingham 1% occupational; auto-renewal of WH ID annually |
| 2 | AK | NoPIT | N/A | N/A | $51,700 / 2.37% new / 1.00-5.40% (+ 0.50% employee SUI) | AK Child Support Services | N | N | N | Employee SUI contribution rare nationally; high SUTA base |
| 3 | AZ | Flat 2.5% | Form JT-1 (joint w/ SUTA) | A1-QRT quarterly, due last day of month after Q | $8,000 / 2.0% new / 0.04-9.72% | AZ New Hire Reporting Center | N | N | N | Employee chooses WH % on A-4 (0.5%-3.5%); flat tax effective 2023 |
| 4 | AR | Graduated up to 3.9% | AR-1R | AR941M monthly + AR941A annual recon; quarterly if <$1K | $7,000 / 1.9% new / 0.1-14.0% | AR New Hire Reporting Center | N | N | N | Convenience-of-employer state for remote workers post-2021 |
| 5 | CA | Graduated 1-13.3% (+1% MHST >$1M) | DE 1 (EDD registration) | DE 9 + DE 9C quarterly, due last day of month after Q-end | $7,000 (lowest in US) / 3.4% new / 1.5-6.2% | CA EDD New Employee Registry | Y 1.20% EE; no wage cap | Bundled w/ SDI (PFL) | N (except SF GRT) | AUDIT FLASH POINT: SDI no-cap since 2024 (SB 951); CalSavers mandate for 1+ EE since 12/31/2023 |
| 6 | CO | Flat 4.40% | CR 0100 (MyBizColorado) | DR 1094 monthly/quarterly per filing tier | $27,200 / 3.05% new / 0.81-12.34% | CO Family Support Registry (CSE) | N | Y FAMLI 0.90% | N | FAMLI 50/50 split; SecureSavings retirement mandate (5+ EE) |
| 7 | CT | Graduated 2-6.99% | REG-1 | CT-941 quarterly, due last day of month after Q | $26,100 / 2.5% new / 1.1-7.8% | CT DOL New Hire Reporting | N | Y CTPL 0.50% EE | N | Convenience-of-employer state; CT MyCTSavings mandate (5+ EE) |
| 8 | DE | Graduated 2.2-6.6% | CRA (Combined Registration) | W1-Q quarterly or W1 monthly per liability | $12,500 / 1.2-1.8% new / 0.3-6.5% | DE DHSS Division of Child Support | N | Y (eff. 1/1/2026) DE Paid Leave | Y (Wilmington 1.25%) | Convenience-of-employer for remote workers; DE Paid Leave contributions begin 1/1/2025 with benefits 1/1/2026 |
| 9 | DC | Graduated 4-10.75% | FR-500 (MyTax.DC.gov) | FR-900Q quarterly, due last day of month after Q | $9,000 / 2.7% new / 1.9-7.4% | DC Directory of New Hires | N | Y DC PFL 0.75% ER-only | Y (residents only) | DC PFL is employer-funded entirely; residents working elsewhere taxed by DC |
| 10 | FL | NoPIT | N/A | N/A | $7,000 / 2.7% new / 0.1-5.4% (called "Reemployment Tax") | FL Dept Revenue Child Support | N | N | N | RT-6 quarterly reemployment return; no SUTA on first-year exempt orgs |
| 11 | GA | Graduated 1-5.39% (flattening to 5.19% in 2025) | Form CRF-002 | G-7 monthly or G-7Q quarterly | $9,500 / 2.7% new / 0.04-7.56% | GA New Hire Reporting Center | N | N | N | Atlanta city government has separate occupational tax but no local PIT |
| 12 | HI | Graduated 1.4-11% | BB-1 | HW-14 quarterly (now monthly for most >$5K/yr) | $62,000 (very high) / 4.0% new / 0.2-5.8% | HI Child Support Enforcement Agency | Y HI TDI 0.50% EE max | N (TDI only) | N | TDI premium split: EE up to 0.50%, ER balance; high SUTA base |
| 13 | ID | Graduated 1-5.695% (now flat 5.8% per HB 521) | Form IBR-1 | Form 910 monthly/quarterly per tier | $55,300 / 1.0% new / 0.207-5.4% | ID DOL Child Support | N | N | N | Flat 5.8% effective 2025; semi-monthly deposits over $300K/yr |
| 14 | IL | Flat 4.95% | REG-1 (MyTax Illinois) | IL-941 quarterly, due last day of month after Q | $13,916 / 3.95% new / 0.85-8.65% | IL Dept Employment Security | N | N (Chicago Paid Leave ordinance only) | N | Secure Choice retirement mandate (5+ EE); Chicago Paid Leave & Paid Sick Leave 2024 |
| 15 | IN | Flat 3.0% (county +) | BT-1 (INBiz) | WH-1 monthly + WH-3 annual recon | $9,500 / 2.5% new / 0.50-7.4% | IN DOL New Hire | N | N | Y (all 92 counties) | County tax determined by residence 1/1; Form WH-4 lists county code |
| 16 | IA | Graduated 4.4-5.7% (flat 3.8% from 2025 per HF 2317) | Form 78-005 | IA W-1 quarterly | $39,500 / 1.0% new / 0.0-7.0% | IA DHHS Centralized Employee Registry | N | N | N | Flat 3.8% effective 2025; biweekly deposit tier >$120K/yr |
| 17 | KS | Graduated 3.1-5.7% | CR-16 | KW-5 monthly/quarterly per tier | $14,000 / 2.7% new / 0.17-6.40% | KS New Hire Directory | N | N | N | KS DOL UI portal separate from Dept Revenue; tiered deposit |
| 18 | KY | Flat 4.0% (down from 4.5%) | 10A100 | K-1 quarterly + K-3 annual recon | $11,700 / 2.7% new / 0.30-9.0% | KY New Hire Reporting Center | N | N | Y (county occupational license) | Louisville Metro 2.2%; Lexington-Fayette 2.25%; collected via Form OL-S |
| 19 | LA | Graduated 1.85-4.25% (flat 3% per HB 10 from 2025) | R-16019 | L-1 quarterly | $7,700 / 1.16% new / 0.09-6.20% | LA New Hires Directory | N | N | N | Flat 3% effective 2025 per Special Session bill |
| 20 | ME | Graduated 5.8-7.15% | Form 941ME | 941ME quarterly + W-3ME annual | $12,000 / 2.32% new / 0.28-6.03% | ME DHHS Division of Support Enforcement | N | Y ME PFML 1.0% (eff. 1/1/2025) | N | ME PFML contributions began 1/1/2025; benefits 5/1/2026; split 60 EE / 40 ER (15+ EE) |
| 21 | MD | Graduated 2-5.75% + county | Combined Registration App | MW506 monthly/quarterly per tier | $8,500 / 2.6% new / 0.3-7.5% | MD New Hire Registry | N | Y MD FAMLI 0.90% (eff. 7/1/2025 contributions, 7/1/2026 benefits) | Y (all counties) | County tax piggybacks on MW507; MD Saves retirement mandate (W-2 employer 2+ yr) |
| 22 | MA | Flat 5% (+ 4% surtax >$1M) | Form TA-1 | M-941 quarterly + monthly per tier | $15,000 / 2.42% new / 0.94-14.37% | MA Child Support Enforcement | N | Y MA PFML 0.88% | N | PFML split: ~60/40 EE/ER (medical); 100% EE (family) for ≥25 EE employers |
| 23 | MI | Flat 4.25% | Form 518 | Form 5080 monthly/quarterly | $9,500 / 2.7% new / 0.06-10.3% | MI New Hires Operations Center | N | N | Y (24 cities) | Detroit 2.4% resident/1.2% non; collected via Form CITY-W-4; rate dropped to 4.05% per Earned Income Tax Trigger but court reverted |
| 24 | MN | Graduated 5.35-9.85% | Business Tax Reg | MN Form W-3 quarterly | $43,000 / standard 1.6% new / 0.10-9.10% | MN DHS Office of Child Support | N | Y MN Paid Leave (contributions begin 1/1/2026) | N | Contribution rate 0.88% projected; ESST sick leave statewide since 2024 |
| 25 | MS | Graduated 0-5% (flat 4% 2025; 3% 2030) | Form 89-350 | 89-105 quarterly | $14,000 / 1.2% new / 0.20-5.40% | MS Dept Human Services Case Registry | N | N | N | Flat 4% effective 2025; full repeal trigger by 2040 per HB 1733 |
| 26 | MO | Graduated 2-4.7% | Form 2643 | MO-941 monthly/quarterly per tier | $9,500 / 2.376% new / 0.0-9.0% | MO Family Support Division | N | N | Y (KC + St. Louis 1%) | Kansas City/St. Louis 1% Earnings Tax (Form RD-110/E-234) |
| 27 | MT | Graduated 4.7-5.9% (flat 5.9% top from 2024) | Form GenReg | MW-1 monthly/quarterly per tier | $45,100 / 1.0-2.3% new (industry-based) / 0.0-6.12% | MT DPHHS Child Support Enforcement | N | N | N | MT new-employer rate varies by NAICS industry (only state with this) |
| 28 | NE | Graduated 2.46-5.84% (5.20% top from 2025) | Form 20 | Form 941N quarterly | $9,000 (cat 1) / $24,000 (cat 20) / 1.25% new / 0.0-5.4% | NE Workforce Development | N | N | N | Convenience-of-employer state; SUTA wage base varies by category |
| 29 | NV | NoPIT | N/A | N/A | $41,800 / 2.95% new / 0.25-5.4% | NV New Hire Reporting | N | N | N | Modified Business Tax 1.378% on wages >$50K/quarter (excise on payroll) |
| 30 | NH | NoPIT (I&D tax repealed 2025) | N/A (I&D 1040 individual only) | N/A | $14,000 / 1.7% new / 0.1-7.0% | NH DHHS Division of Child Support | N | N (Granite State Paid Family Leave Plan voluntary) | N | Voluntary state-administered PFL through MetLife; tax credit available |
| 31 | NJ | Graduated 1.4-10.75% | NJ-REG | NJ-927 quarterly | $43,300 / 2.8% new / 0.4-5.4% | NJ Child Support New Hire Reporting | Y TDI EE 0.23% + ER rated | Y FLI EE 0.33% | N | AUDIT FLASH POINT: SDI + FLI separate line-item deductions on paycheck stub; FLI base $165,400 (capped) |
| 32 | NM | Graduated 1.7-5.9% | ACD-31015 | TRD-41414 monthly + CRS-1 quarterly | $33,200 / 1.0% new / 0.33-6.4% | NM Children Youth & Families Dept | N | N | N | Workers' Compensation Fee $4.30/qtr; gross receipts overlay |
| 33 | NY | Graduated 4-10.9% (+ NYC) | NYS-100 | NYS-45 quarterly (combined WH + SUTA) | $12,800 / 4.025% new / 2.025-9.825% | NY New Hire Online | Y DBL (private carrier) | Y NY PFL 0.388% EE | Y (NYC, Yonkers) | AUDIT FLASH POINT: Convenience-of-employer state; MCTMT 0.34-0.60% for MCTD employers >$312,500/qtr; NYS-45 is the ONE quarterly form |
| 34 | NC | Flat 4.5% (4.25% from 2025; 3.99% 2026) | NC-BR | NC-5 monthly/quarterly per tier | $32,600 / 1.0% new / 0.06-5.76% | NC New Hire Directory | N | N | N | Semi-weekly deposit threshold $2K/month |
| 35 | ND | Graduated 1.95-2.5% | Form 301 | F-941 quarterly | $43,800 / new construction 9.83% / new non-const 1.05% / 0.08-9.97% | ND Dept Human Services | N | N | N | Two new-employer rates split by construction vs. non-construction NAICS |
| 36 | OH | Graduated 2.75-3.5% (flat 2.75% from 2026) | IT 1 (Ohio Business Gateway) | IT 941 / IT 942 per tier | $9,000 / 2.7% new (5.5% construction) / 0.4-10.1% | OH Centralized Employee Registry | N | N | Y (~600 municipalities, RITA/CCA) | AUDIT FLASH POINT: RITA/CCA municipal withholding by work-location for ≤20 days, then resident; school-district WH (SD-101) separate from city |
| 37 | OK | Graduated 0.25-4.75% | OW-11 (OkTAP) | WTH 10001 quarterly | $27,200 / 1.5% new / 0.3-9.2% | OK New Hire Reporting Center | N | N | N | New-employer rate higher than many states |
| 38 | OR | Graduated 4.75-9.9% | Form OR-WR-1 (Combined Payroll) | OR-OQ quarterly | $54,300 / 2.4% new / 0.9-5.4% | OR DOJ Division of Child Support | N | Y Paid Leave Oregon 1.00% | Y TriMet 0.8237% / Lane Transit 0.79% | AUDIT FLASH POINT: TriMet/Lane Transit payroll tax; statewide transit tax 0.10% EE; OR Paid Leave employers ≥25 split 40 ER / 60 EE; OregonSaves mandate |
| 39 | PA | Flat 3.07% | PA-100 | PA-W3 quarterly | $10,000 / 3.822% new (10.5924% construction) / 1.419-10.3734% | PA CareerLink | N | N | Y (Act 32 EIT + LST $52/yr) | AUDIT FLASH POINT: Act 32 EIT — capture PSD code on Form Residency Certification at hire; LST $52 max (split if multiple jurisdictions); PA also has 0.07% EE UC contribution |
| 40 | RI | Graduated 3.75-5.99% | BAR (Business Application) | 941-Q quarterly | $29,200 (regular) / $30,700 (high-rate employers) / 0.98% new / 0.95-9.4% | RI DLT | Y RI TDI 1.30% EE | Y RI TCI bundled w/ TDI | N | TDI / TCI taxable wage base $89,200; second wage base for SUTA |
| 41 | SC | Graduated 3-6.4% (6.2% from 2025) | SCDOR-111 | WH-1605 quarterly | $14,000 / 0.41-5.4% (no fixed new-emp rate, year-1 = avg) | SC New Hire Reporting Program | N | N | N | New-employer rate set as the average rate of contributing employers |
| 42 | SD | NoPIT | N/A | N/A | $15,000 / 1.0% new (6% construction) / 0.0-9.5% | SD DOL Reemployment Assistance | N | N | N | Investment fee 0.02-0.55% on top of SUTA; no separate WH portal |
| 43 | TN | NoPIT | N/A | N/A | $7,000 / 2.7% new / 0.01-10.0% | TN Dept Human Services New Hire | N | N | N | Hall Income Tax repealed 2021; LLC/franchise tax obligations remain |
| 44 | TX | NoPIT | N/A | N/A | $9,000 / 2.7% new / 0.25-6.25% | TX Office of Attorney General Child Support | N | N | N | Form C-3 quarterly to TWC; no city-level PIT but franchise/sales overlay |
| 45 | UT | Flat 4.55% | TC-69 | TC-941E quarterly | $48,900 (high) / 1.4% new / 0.3-7.3% | UT Dept Workforce Services | N | N | N | One of highest SUTA bases nationally |
| 46 | VT | Graduated 3.35-8.75% | Form BR-400 | WHT-436 quarterly + WHT-434 annual | $14,800 / 1.0% new / 0.4-5.4% | VT DCF Office of Child Support | N | N (voluntary PFML through The Hartford) | N | VT Child Care Contribution 0.44% payroll tax (employer 0.33% / employee 0.11%) since 7/1/2024 |
| 47 | VA | Graduated 2-5.75% | R-1 | VA-5 monthly + VA-6 annual recon (most filers monthly) | $8,000 / 2.5% new / 0.1-6.2% | VA New Hire Reporting Center | N | N | N | VirginiaSaves (RetirePath) mandate for 25+ EE (eff. 7/1/2023) |
| 48 | WA | NoPIT | N/A | N/A | $72,800 (highest in US) / 1.0% new / 0.27-6.03% | WA DSHS Child Support | N | Y WA PFML 0.92% + Cares Fund LTC 0.58% | N | AUDIT FLASH POINT: WA Cares Fund 0.58% employee-only payroll deduction (LTC trust); WA Paid Sick Leave statewide; highest SUTA wage base in US |
| 49 | WV | Graduated 2.36-5.12% | WV/BUS-APP | IT-101 quarterly/monthly per tier | $9,500 / 2.7% new (8.5% construction) / 1.5-8.5% | WV BCSE New Hire | N | N | Y (4 cities — service fee flat $$ ): Charleston, Huntington, Wheeling, Weirton | City fees collected via local form, not withholding |
| 50 | WI | Graduated 3.5-7.65% | BTR-101 | WT-6 monthly + WT-7 annual | $14,000 / 3.05% new (3.25% construction) / 0.0-12.0% | WI DCF Trust Fund | N | N | N | WI new-construction rate higher; weekly deposit threshold $5K/month |
| 51 | WY | NoPIT | N/A | N/A | $32,400 / 0.07-8.5% (rate by NAICS) / no fixed new-emp | WY DWS | N | N | N | New-employer rate set by industry classification |
A $500K/yr executive pays $6,000+ to SDI annually. AUDIT FLASH POINT: payroll providers from 2023 or earlier still capping at the old wage base.
PSD-code mismatches generate notices from any of the ~21 active TCDs (Berkheimer, Keystone, Capital Tax, etc.). A wrong PSD code on day one will compound for years.
Remote workers post-2021 sometimes get incorrectly withheld for the office-city when they actually never go there. HB 110 phased out the COVID-era principal-place-of-work emergency rule; the 20-day test now applies.
Out-of-state employer with WA-resident remote employee must register for both PFML and Cares Fund — many miss this.
The convenience-of-employer rule (also called the "convenience of the employer" rule or COE rule) is the single largest audit flash point for multi-state employers in 2024-2025:
Convenience-of-employer rule by state (See table)
| State | Authority | Effect |
|---|---|---|
| New York | TSB-M-06(5)I | Wages of NY-based employer's remote employee sourced to NY unless employer requires the out-of-state location |
| New Jersey | Adopted 2023 (P.L. 2023, c.125) — limited reciprocal application against NY | Reverse convenience rule that sources to NJ in mirror situations |
| Connecticut | Conn. Gen. Stat. §12-711(b)(2)(C) | COE applies when nonresident works for CT employer |
| Pennsylvania | 61 Pa. Code §109.8 | COE rule for PA-employer non-resident remote workers |
| Nebraska | Nebraska Reg-22-003.01C | COE rule applies |
| Arkansas | Reg. §1.26-51-202 | COE rule applies |
| Delaware | 30 Del. C. §1124 (interpretation) | COE rule applies |
Practical guidance: when a client has a remote employee residing outside a COE-rule state but employed by a company headquartered in one of these seven states, withholding both states' PIT may be required, with the employee filing for credit. The default conservative position is to withhold for the COE state plus the residence state until the employee files for an exemption.
Before finalizing a multi-state payroll setup, verify each item:
Provenance table (See table)
| Data point | Source |
|---|---|
| SUTA wage bases & rates 2025 | State unemployment agency websites; APA Bulletin Q4 2024; cross-referenced with US DOL ETA-204 reports |
| State PIT brackets | State revenue agency 2025 withholding tables |
| Quarterly return form names | State revenue agency current forms list 2025 |
| PFML programs and rates | State PFML agency 2025 rate notices (CA EDD, NY DOL, NJ DOL, RI DLT, MA DFML, WA ESD, OR PLO, CT PFLI, CO FAMLI, DC OPFL) |
| New-hire reporting agencies | Federal Office of Child Support Services state-by-state directory under 42 U.S.C. §653a |
| Convenience-of-employer states | State tax department published rulings; Edward A. Zelinsky v. Tax Appeals Tribunal (NY 2003); Huckaby v. NY State Div. of Tax Appeals (2005) |
| Local tax inventory | Tax Foundation 2024 local income tax census; state Dept Revenue lists |
| Retirement mandate states | NAGDCA 2024 state retirement program tracker |
This matrix is a starting reference. Every state agency may revise rates, wage bases, and form names mid-year. Reviewer must verify the current rate at filing time. Last consolidated review: 2025-11-15.
us-form-941-940-payroll.md — Federal employer payroll obligationsus-multi-state-allocation.md — W-2 wage allocation for multi-state employeesus-1099-nec-issuance.md — Contractor reportingca-540-individual-return.md — California state return (resident perspective)tx-franchise-tax.md — Texas state-level reportingus-tax-workflow-base.md — Workflow runbook (load alongside)Ask OpenAccountants about payroll, payslips and employer filings in the countries where you hire. Start with a free 30-minute call. We confirm availability, the accountant responsible and the price before you commit.
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