Out-of-State EmployeesNov. 15, 2012
Baylor University frequently has employees who for one reason or another, are required to leave the Waco area. Other times, a job opening with a specific set of requirements may only be filled by someone who resides outside of Texas. While Baylor University can, in limited circumstances, hire (or continue to employ) staff who reside and work from outside Texas, there are a number of factors which complicate such hires.
Did you know that Baylor University has to register to do business in that state? Baylor will have to pay state, and local payroll taxes as well. Different states have different requirements regarding unemployment benefits and the expenses associated with paying these benefits. Further, Baylor will be required to obtain worker's compensation insurance in that state. All of these requirements place a significant burden on Baylor's payroll, insurance, benefits and legal administrators. While it seems like a simple decision for you, there are additional costs to such a hire, and the regulatory requirements for Baylor can be significant. Where they can be tracked, the costs associated with employing the out-of-state employee will be billed back to your department for payment.
Therefore, prior to hiring or agreeing to retain someone who will reside outside of Texas, please coordinate with Baylor's Tax Compliance Office and Baylor's Office of General Counsel so that the University can plan with you before the hire is made.