US 50-State Payroll Reference Matrix (Tax Year 2025)

1. Scope

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:

• State income tax (PIT) withholding: registration forms, employee certificates, quarterly returns, due dates
• State Unemployment Tax Act (SUTA) contributions: 2025 taxable wage base, new-employer rate, experience-rated range
• State new-hire reporting under 42 U.S.C. §653a (federal 20-day deadline; state-specific portals)
• State disability insurance (SDI) and short-term disability mandates (CA, NY, NJ, RI, HI, PR — not all flagged here)
• State paid family and medical leave (PFML) mandates: CA, NY, NJ, RI, MA, WA, OR, CT, CO, DC, MN (effective 2026), DE (effective 2026), MD (effective 2026)
• Local income / occupation / privilege taxes: PA Act 32 EIT, OH RITA/CCA, KY occupational license fees, NYC resident tax, AL/MO/MI/MD/IN/DE municipal income taxes
• State-specific retirement mandates: CalSavers, IL Secure Choice, OR OregonSaves, CT MyCTSavings, MD Saves, VA RetirePath, CO SecureSavings, NJ Secure Choice, NY Secure Choice
• Transit / special district payroll taxes: OR TriMet & Lane Transit, NY MCTMT, WA Cares Fund

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.

2. How to use this matrix

1. 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.
2. 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)
3. 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).
4. 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.
5. Cross-reference Section 5 for the state-by-state quirks before finalizing the payroll setup.

3. Quick-reference tables

3.1 Multi-state employer essentials

A "multi-state employer" for new-hire reporting purposes (42 U.S.C. §653a(b)(1)(B)) 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.

3.2 No-PIT states (9)

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.

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	—

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

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

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4. THE BIG 50-STATE + DC TABLE

Column key:

1. State
2. PIT type: NoPIT / Flat / Graduated
3. Withholding registration form
4. Quarterly withholding return + due date
5. SUTA wage base 2025 + (new-employer rate / experience range)
6. New-hire reporting agency + portal
7. SDI? (rate)
8. PFML? (rate)
9. Local income tax?
10. Notable quirks

#	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

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5. State-by-state notable quirks (selected high-risk states)

5.1 California — the heaviest state-level burden in the US

• SDI (CA-EDD Form DE 9 / DE 9C) is now 1.20% with no wage cap since 2024 (SB 951 removed the cap). 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.
• 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.
• PIT brackets to 12.3% + 1% Mental Health Services Tax on income >$1M = 13.3% top marginal.
• DE 9 / DE 9C is 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.
• WTPA wage notice must be furnished at hire (Labor Code §2810.5).

5.2 New York — the convenience-of-employer trap

• NYS-45 is the combined quarterly return: state PIT WH + SUTA + MCTMT (where applicable). One form, four parts.
• Convenience-of-employer rule (TSB-M-06(5)I): 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.
• MCTMT (Metropolitan Commuter Transportation Mobility Tax): 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.
• NY PFL funded via employee payroll deduction (0.388% of wages capped at NYSAWW × 0.388%) remitted to the private DBL carrier.
• NYC has a resident-only city PIT (3.078-3.876% graduated); employer must withhold for NYC residents but not for non-residents. Yonkers has both resident (16.75% of NY state tax) and non-resident (0.5%) earnings tax.

5.3 New Jersey — multi-deduction stub mandate

• 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
• AUDIT FLASH POINT: the SUI base ($43,300), TDI base ($165,400), and FLI base ($165,400) are different — payroll software must carry three wage bases.
• NJ-927 is the quarterly combined return.

5.4 Pennsylvania — Act 32 EIT compliance

• 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)
• 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) is a 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.
• AUDIT FLASH POINT: 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.

5.5 Ohio — RITA/CCA municipal withholding

• ~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.)
• 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.
• 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.
• AUDIT FLASH POINT: 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.
• Separate school-district income tax (SDIT) withholding on Form SD-101 for ~190 school districts (paid by residents of those districts).

5.6 Washington — Cares Fund LTC + PFML stack

• 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 PFML: 0.92% combined; employer share 28.57%, employee share 71.43% for 2025 (varies annually based on premium experience).
• No PIT so employers register only with WA ESD for both unemployment and PFML.
• AUDIT FLASH POINT: out-of-state employer with WA-resident remote employee must register for both PFML and Cares Fund — many miss this.

5.7 Oregon — TriMet & Statewide Transit

• 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.
• 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.

5.8 Colorado — FAMLI

• FAMLI: 0.90% on wages up to SS base; 50/50 employer/employee split for employers with ≥10 employees; employee-only for employers <10.
• CO SecureSavings retirement mandate for employers with 5+ employees since 12/31/2023.

5.9 Illinois — Secure Choice + Chicago

• IL Secure Choice mandate: 5+ employees, no qualified plan → must register and facilitate Roth IRA contributions.
• Chicago Paid Leave & Paid Sick Leave ordinance (effective 7/1/2024) layers on top of IL state ESST.
• 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.

5.10 Massachusetts — PFML

• MA PFML 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.
• The 4% surtax on income >$1M (the "Millionaires Tax," Article 44) means high earners need additional withholding via Form M-4.

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6. AUDIT FLASH POINTS — multi-state remote workers

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:

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.

7. Practitioner self-check list

Before finalizing a multi-state payroll setup, verify each item:

• FEIN obtained for the entity
• State withholding registration in each state where employees physically perform services
• SUTA registration in each state where wages are localized under the 26 USC §3306(j) four-part test (services localized → services performed in the state → base of operations → direction & control → residence)
• SUTA new-employer rate confirmed against state agency; some states (SC, ND, MT) deviate from a single rate
• State new-hire reporting account created (multi-state employers may elect a single state under §653a(b)(1)(B) by filing election with HHS-OCSS)
• PFML registration in each state with a mandate (CA, NY, NJ, RI, MA, WA, OR, CT, CO, DC, ME from 2025; MN, DE, MD from 2026)
• SDI registration in CA, HI, NY, NJ, RI (mandated states)
• Local tax setup:
  • PA: Residency Certification Form completed; PSD codes verified; TCD identified
  • OH: RITA/CCA/self-administered city determined; SDIT verified
  • KY: County occupational license registration
  • NY: NYC vs Yonkers resident WH; MCTMT threshold checked
  • MD: county code verified
  • IN: county tax code per residence as of 1/1
• State retirement mandate registered or opted out:
  • CA CalSavers (1+ EE)
  • IL Secure Choice (5+ EE)
  • OR OregonSaves (all sizes)
  • CO SecureSavings (5+ EE)
  • CT MyCTSavings (5+ EE)
  • MD Saves (2+ yr W-2 employer)
  • VA RetirePath (25+ EE)
  • NY Secure Choice (10+ EE)
  • NJ Secure Choice (25+ EE)
• Transit district setup:
  • OR TriMet (Portland metro) / LTD (Eugene metro)
  • NY MCTMT (12 downstate counties; threshold $312,500/qtr)
• WA Cares Fund 0.58% if any WA-resident employee
• State paid-sick-leave compliance (separate from PFML): AZ, CA, CO, CT, IL, MD, MA, MI, MN, NV, NJ, NM, NY, OR, RI, VT, WA, DC + many municipalities
• Workers' compensation insurance procured in each state of employment (this matrix does not cover WC rates)
• Convenience-of-employer review for any remote employee of a NY/NJ/CT/PA/NE/AR/DE-based employer

8. Provenance

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.

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Cross-references:

• us-form-941-940-payroll.md — Federal employer payroll obligations
• us-multi-state-allocation.md — W-2 wage allocation for multi-state employees
• us-1099-nec-issuance.md — Contractor reporting
• ca-540-individual-return.md — California state return (resident perspective)
• tx-franchise-tax.md — Texas state-level reporting
• us-tax-workflow-base.md — Workflow runbook (load alongside)

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