With the growing need for health care provider mobility, an increasing number of doctors, nurses and physical therapists are crossing state borders to work.
But with a multistate workforce comes multistate tax laws, and multi opportunities to find yourself out of compliance. Steering clear of costly audits and penalties requires organization and diligence. Here's how Payroll Tax Management can help.
Multistate Licenses for Health Care Workers Increases Mobility
Multistate healthcare traveling got a boost this year when North Carolina and 25 other states joined the Enhanced Nurse Licensure Compact, which allows nurses to practice in any one of the 29 states without applying for separate state licenses, according to the North Carolina Center for Public Policy Research. Similar cross-state agreements exist for physicians, psychologists, emergency medical technicians and physical therapists, the agency reports. Some states, such as California, do not accept the license. Even in states that do not have the multistate license, many healthcare workers are crossing state lines and working because they have separate licenses to practice in each state. That can affect your payroll and how you collect your taxes.
Currently, there are two dozen states that require payroll taxes to be paid by employees who work in the state for only one day. That creates a lot of paperwork for your business.
The Mobile Workforce State Income Tax Simplification Act
Legislation pending in committee in the U.S. Senate could provide some relief for employers. The Mobile Workforce State Income Tax Simplification Act, passed by the U.S. House of Representatives last year, requires a mobile employee to work in the non resident state for more than 30 days before the multistate tax requirement applies. The law exempts professional athletes and entertainers.
Best Practices for Keeping up with the Array of Multistate Tax Laws
Meanwhile, what can you do to keep up with the dizzying array of multistate payroll tax laws for your health care workers? There are some states that have reciprocal agreements. Each state has varying thresholds for when you need to pay the tax for your employees. But you don't have to manage all of this on your own.
At Payroll Tax Management, untangling tax compliance rules and regulations is what we do every day, providing the knowledge, tools, resources and customer service that allows our clients to sleep well at night, knowing that they've got payroll tax compliance covered.
With expertise in more than 11,000 taxing agencies across the county and customizable software, we provide our clients all the benefits and flexibility of in-house payroll tax processing without the worry and the headaches. With multiple options and ancillary services, we can take on the burden of your multistate payroll tax compliance and leave you to the task of growing your business. Benefits include:
- Customizable payroll tax platform
- Scalable technology
- Competitive rates and fees
- First-rate customer service