Employee living in another state

[MikeNLV]

What is the name of your state? CA
We are a small CA corporation who has been contracting with a software developer in NV and want to make him a permanent, full-time employee. This employee doesn't provide any external services- i.e. he doesn't have a public office, see clients there, etc.- he basically works on his computer at home and wants to telecommute from NV. He would come to CA once a month for business meetings and other functions as required.

My question: by our CA corp. having a telecommuting employee living in NV, do we have to set up a 'business presence' of any kind in NV? Will we need a business license or workers comp for NV if this person is a telecommuter? He has agreed to have CA payroll taxes taken out, so that's not an issue. I'm just more concerned about the state-level implications of doing this. Plus I'm not sure what department or which state to consult about this! Any ideas on who the definitive agency would be to contact about this?

Thanks!

 

[clueless3]

My question: by our CA corp. having a telecommuting employee living in NV, do we have to set up a 'business presence' of any kind in NV? Will we need a business license or workers comp for NV if this person is a telecommuter?

If you don't have an office or warehouse in NV, you can get away with having to file a foreign corp or a business license there. However, since he's a NV resident, you might have to pay NV's worker comp for him. Therefore, NV will know that your company has an employee there, and they might want you to file [as a foreign corp] there. Ask the NV Secretary of State office.

He has agreed to have CA payroll taxes taken out, so that's not an issue.

Why pay for CA payroll taxes for him if you don't have to?? Verify with your CPA to see if you have to.