Payroll Out-of-State Employee Tax Resources

New Out-of-State Payroll Tax Processing (OOS) enhancements for HRMS to automate processing of Out-of-State (OOS) taxes for Oregon and Idaho are now available! All agencies that use HRMS for payroll and have employees living and/or working in Oregon or Idaho can begin using the new functionality as of September 11, 2024 for the September 25, 2024 pay date and beyond.

For information on processing these taxes on employees living and/or working in Oregon or Idaho, refer to the Additional Steps for Out-of-State Employees user procedures. For processing payroll taxes for other states, refer to the Out-of-State Tax Processing in HRMS Guidance resource.

The following resources can be used to assist agencies who have out-of-state employees. OFM will continue to add resources and information to this page as they become available. Please submit questions to HeretoHelp@ofm.wa.gov.

Frequently Used OFM Resources:

• Additional Steps for Out-of-State Employees
• Out-of-State Tax Processing in HRMS Guidance
• HRMS Other State Tax Wage Types 
• OFM Out-of-State Remote Work Guidance and Resources
  • Managing Out-of-State Employees – Primary Roles & Responsibilities
• Processing Out-of-State Payroll Taxes Workshop Video
  • Processing Out-of-State Payroll Taxes Workshop Transcript
  • Processing Out-of-State Payroll Taxes Workshop Slides

Additional Washington State Resources:

• Department of Enterprise Services Out-of-State Worker's Compensation: This is an FAQ about the DES-administered insurance program that agencies must enroll in for their state employees working outside Washington for more than 240 hours per year.

• Washington Labor & Industry Out-of-State Employers and Out-of-State Workers: The LNI website provides information about workers compensation coverage when workers are coming into or traveling our of Washington state, including information about reciprocal states and out-of-state supplemental reporting.
• Office of Child Support Enforcement and Registering New Hires: This communication explains how to register as a multistate employer with the Office of Child Support Enforcement, as well as how to ensure that you are in compliance with federal new hire reporting requirements for out-of-state employees.
  • Multistate Employer Registration Form for New Hire Reporting: Employers who have employees working in two or more states may use this form to register to submit their new hire reports to one state or make changes to a previous registration.
  • Employer Services Profile Form: Register for access to the Child Support Portal.

Federal and Professional Association Resources:

• Thomson Reuters Checkpoint State Tax & Employment Law Research (requires subscription): This tool is for researching other state payroll tax and employment laws. To request access, the agency payroll or HR supervisor must send an e-mail to OFMAccounting@ofm.wa.gov approving access for staff and provide the name, job title and e-mail address of the individual who needs access.
  • OFM Checkpoint Quick Guide: This 15-minute video provides guidance on logging in, searching and working with documents in Checkpoint.
• American Payroll Association (APA)
• Federation of Tax Administrators – State Tax Agencies: List of state tax agency websites.
  • Note: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming do not have income taxes. Other state or local taxes may apply.
• Multi State Tax Commission (MTC)
• Society of Human Resource Managers (SHRM) Multistate Laws Comparison Tool (SHRM Membership Required to Access)