Employers have a wide array of benefit choices with which they can compensate their employees, and the means by which they do so can vary from state to state. There are also variations in the methods by which companies pay for these benefits. Ultimately, employers need to carefully strike a balance between the value they offer to their workers and the amount of money that they expend doing so.
Tax withholding is an important part of this equation because it affects how much money a worker receives in her paycheck. Salaries are the ultimate benefit and should be treated as such, but there are quite a few regulations and laws that apply to their distribution. For example, workers who live in a different state than that in which they work need to be treated differently than in-state employees.
The rules that apply to such situations follow a hierarchy that must be strictly adhered to. The most important laws are those that apply to the state in which work is performed. Next is the place where a company's base of operations is located, followed by the state where the majority of a business' operations are coordinated. Finally, the least important area is where a worker lives. Confer with an employee benefit specialist to be sure that each and every regulation is followed appropriately.
