Payroll companies handle all the workers comp and payroll related duties for all different states and they do it for near nothing.
The only thing you are on your own for is tax filings and registration as a foreign entity. And that is only in some cases in some states. In most states, having a few remote employees is not enough to even trigger a filing requirement. In CA, which is probably one of the most draconian, we had to register as a foreign entity and then we have to file corporate taxes there and allocate taxes proportionally according to percentage of revenue that comes from CA, I believe.
And actually, they want your corporate income tax even if you don't have employees there, just because you sell to Californians. But they have had a hard time collecting for those that have no employees or other presence in the state.
> Payroll companies handle all the workers comp and payroll related duties for all different states and they do it for near nothing.
I know for a fact this is wrong. Payroll companies don’t do worker’s compensation in Washington because the state runs the insurance program. You have to register with the state.
The state runs most workers comp programs as far as I know. How is Washington any different than say California? I may have had to follow some one time instructions to initially setup a workers comp account in California, but I haven't touched it since. And my $50/month payroll service handles all of the payments and filings for me.
All 50 states have a different process. Many require you to get a private policy but some have state run funds.
As an example, I have to deal with my insurance agent annually for my worker’s compensation in California and then deal with Washington separately for their scheme.
The only thing you are on your own for is tax filings and registration as a foreign entity. And that is only in some cases in some states. In most states, having a few remote employees is not enough to even trigger a filing requirement. In CA, which is probably one of the most draconian, we had to register as a foreign entity and then we have to file corporate taxes there and allocate taxes proportionally according to percentage of revenue that comes from CA, I believe.
And actually, they want your corporate income tax even if you don't have employees there, just because you sell to Californians. But they have had a hard time collecting for those that have no employees or other presence in the state.