[dboreham]

Huh? People move states all the time. There are IRS rules about which state you should be deemed a resident, and you'll need to file state tax return in both states for the year in which you move. But there's no magic about needing a lease. I'm sure there are thousands of people living in their cars still paying taxes.

[cdjk]

Unemployment insurance (and family/medical leave), workers compensation, and health insurance are the biggest issues. Adding a new state for one employee can be a lot of overhead.

[hoorayimhelping]

This is common in places like New York City, so it's well understood for companies on how to make it work. It's not very common in San Francisco to have commuters from out of state.

I work for a remote company headquartered in California with employees all over the US. Every state, even states with no state income tax, have different codes and expectations when it comes to taxes. Adding a new state to our payroll system takes a significant amount of time and effort to get right.

[jldugger]

I think the bigger worry isn't that they'll fuck up filing with the IRS, but that in order for them to be compliant you'll have to notify them you moved, at which point they'll be onto your clever scheme and demand you take a cost of living pay cut.

[bdcravens]

For the employer's taxes, are there incentives for hiring in-state? Or would it impact where they are considered to have a presence, for sales tax purposes?

[ghaff]

>considered to have a presence, for sales tax purposes

Mostly irrelevant these days post-Wayfair.

>For the employer's taxes, are there incentives for hiring in-state?

I am not an accountant but there is some overhead with adding employees in different states and, especially, countries. And things like payments into unemployment pools may differ by state.