If my business has employees working in several states, to which state should I report my employees?

Each employee’s situation may be different. Use the first applicable test of the 4 tests below when determining to which state a particular employee’s wages should be reported. If no test applies or you are not sure how to apply the test, contact our Employer Services unit at 615-741-2486 for assistance.

TEST (1) – The localization of services test – Wages are reported and premiums are paid to the state in which the service is performed. This test is applied only if the employee’s service is performed entirely within one state or the service is performed both within and outside of one state, but the service performed outside of that one state is incidental to the individual’s service within that one state. If this test is not applicable to the particular employee’s circumstance, apply TEST (2).

TEST (2) – The employee base of operations test – Wages are reported and premiums are paid to the state in which the employee has his base of operations and has performed some services. If this test is not applicable to the particular employee’s circumstance, apply TEST (3).

TEST (3) - The employer base of operations test – Wages are reported and premiums are paid to the state from which the service is directed or controlled if the employee performed some service in that state. If this test is not applicable to the particular employee’s circumstance, apply TEST (4)

TEST (4) – The place of residence test – Wages are reported and premiums are paid to the state in which the employee lives if some service is performed in that state.

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