Guest column

Houston expert: 4 questions to ask when hiring employees in other states

Remote workers became a necessity in the pandemic — now it's becoming the norm. Here's how to navigate the remote hiring process. Photo by Edmond Dantès via Pexels

A larger share of employees has found themselves working from home, or at least working remote, than ever before and many continue to do so permanently. As employers actively take steps to ensure a strong showing throughout the economic recovery, the nature of remote work has allowed employers to cast their nets far and wide in search of top-notch talent. Remote work also opened up the option for some existing employees to seize the opportunity to move to their dream locale.

Due to the nature of employment law in the U.S., remote workers spread out in varying states pose a challenge to employers – and most business owners are simply not prepared. However, by asking the right questions, employers can ensure that they are in line with cross-border rules when it comes to the challenges of having employees based in other states.

What are the payroll requirements?

When it comes to hiring remote employees in other states, it is most important to confirm that they will be properly paid. A record of compliance with state-specific payroll laws is critical in the event of a Department of Labor audit. Examples include local and state minimum wage and pay frequency requirements. Other relevant details range from overtime calculations to payroll deductions. If working with a payroll provider, employers should verify that they are set up to pay out-of-state employees.

What are the state-specific labor laws and regulations?

Another caveat of out-of-state remote employees is the requirement of local- and state-specific labor laws and regulations. Regardless of where a company is headquartered, employers are required to abide by regulations in a number of categories. A few employment regulations that may vary by location include leave – both paid and unpaid – as well as employment benefits, workers' compensation and breaks provided.

How to keep up with regulatory changes?

State-by-state employment regulations are frequently changing, and employers can be especially challenged to maintain compliance with each state's evolving labor laws. Before making a remote workforce a more permanent solution, business owners should decide between assuming the responsibility of regulatory compliance through their own research and system or delegating the role to an external partner such as an employment attorney or professional employer organization.

How to ensure the success of remote employees?

Of course, the undertaking of properly hiring remote employees in other states is only worth it if employers take steps to ensure their success. Company culture is critical to onboarding and retaining remote employees. Business owners should look beyond bookkeeping to support new hires who may be miles away from the company headquarters. Gestures such as branded swag bags and personalized video messages from teammates can make remote employees feel welcomed from afar. Virtual mentorship programs also are valuable in the development of virtual team members.

As employers further consider leveraging the remote workforce or the emerging hybrid workplace model, minimizing regulatory headaches at the onset can potentially save time and money should issues arise. By asking about payroll requirements, maintaining compliance with local and state employment regulations and preparing to preserve compliance in the future, business owners can confidently tap into the growing remote workforce with ease.

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Jill Chapman is a senior performance consultant with Insperity,a leading provider of human resources and business performance solutions.

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Houston-based GoCo.io has raised fresh funding and launched the latest version of its platform. Courtesy of GoCo

A Houston startup that is optimizing human resource operations for small businesses has raised fresh funding from an Austin-based venture capital investor.

GoCo.io raised $15 million in September in a funding round led by ATX Venture Partners. Founded in 2015, the company has raised $27.5 million to date, including its $7 million series A in 2019.

The fresh funding will be used to continue expanding on the company's software services operations and upgrades to its product, which is is modernizing HR, benefits, and payroll.

“We believe that GoCo is the company best positioned to provide HR departments at SMBs with the most flexible employee management software,” says Chris Shonk, general partner at ATX Venture Partners, in a news release. “In a crowded marketplace, GoCo clearly rises to the top with its ease-of-use, flexibility and unparalleled customization.

"We’re excited to be a part of GoCo’s journey, and we look forward to supporting their continued innovation as they solve new and existing challenges HR departments face,” he continues.

Last month, the company launched its latest version of the platform, which included new features, enhanced user experience, and increased integrations. Over the past two years, the company has doubled its team to keep up with its customer growth and product development.

“GoCo is the trusted HR software SMBs rely on and we’re thrilled to reach an exciting funding milestone,” says Nir Leibovich, CEO of GoCo, in the release. “This new investment will enable us to provide additional leap-frog HR technology solutions that ensure every organization’s success by eliminating manual HR tasks. SMBs are facing significant challenges right now and GoCo has grown rapidly because we are able to not only meet but exceed HR departments’ needs and expectations.

"GoCo looks forward to expanding upon providing an outstanding customer experience through this new phase of growth as we launch our newest value-added product this fall,” he continues.

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