Managing people isn’t one-size-fits-all, especially when it comes to state-specific taxes, compliance, and workforce needs. That’s why Paylocity makes it easy to grow your business in every state.
Multi-State Payroll and HR Software
Workforce solutions wherever you do business.
Explore Paylocity's Multi-State Solutions
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Why Employers Across the U.S. Choose Paylocity
No matter where in the U.S. (and beyond) your employees live and work, Paylocity brings together powerful technology that drives real business results.
Payroll Automation and Accuracy
- Configurable payroll audits to ensure compliance with varying tax laws and regulations across multiple states.
- We're a Registered Reporting Agent with the IRS in all 50 states, Puerto Rico, the Virgin Islands, and Guam.
- Automated federal, state, and local tax filings, ensuring accuracy and reducing administrative burden.
- Seamlessly integrate payroll data into accounting systems, simplifying financial reporting for multi-state operations.
Compliance Assistance in Every State
- Centralized view of compliance status across all jurisdictions, with alerts for state-specific requirements.
- Access to the latest federal and state forms, ensuring compliance with multi-state regulations.
- Expedite employment eligibility verification with tools that integrate seamlessly with E-Verify and other systems.
Simplified Time Tracking
- Leverage AI to optimize schedules for the right number of employees with the right skills, even across different locations.
- Track hours worked and meal breaks, ensuring compliance with state overtime and labor laws.
- Accurately record time with punch verification and flexible collection methods, like geolocation, photos, and fingerprints.
What Our Clients Say
Tax and Compliance Resources
FAQs About Paying Employees in the U.S.
Can Paylocity automatically handle multi-state payroll compliance?
Yes, Paylocity’s payroll platform can automate compliance across all 50 states. It calculates, files, and pays state-specific taxes while remaining up-to-date with changing regulations via built-in compliance audits.
How do I integrate time tracking with multi-state payroll?
Paylocity’s integrated platform directly connects its Payroll and Time & Labor Management suites. This ensures each employee’s time data (e.g., work hours, overtime, leave, etc.) flows seamlessly from initial scheduling through payroll processing.
Is there a way to run one payroll for all states instead of multiple separate ones?
Yes, Paylocity’s unified payroll system can handle employees across multiple states in a single payroll run. This reduces administrative work and ensures consistent processes for your whole workforce.
How do I know which state taxes to withhold if an employee lives in one state and works in another?
The work state usually takes priority. That said, if the two states have a reciprocal agreement, you may only need to withhold taxes for the employee’s resident state. Regardless, employees often need to file an exemption form in the work state to trigger the reciprocity agreement.
Do overtime rules vary by state?
Yes, federal law provides a baseline, but many states (like California) have stricter rules. Employers must always follow the law that is most favorable to the employee.
If my employees work remotely across different states, do I need to set up payroll in each one?
Yes, even one remote employee can create a “nexus” for the state they work in, triggering payroll tax and compliance obligations. It’s one of the most common surprises for employers hiring remote workers.