You just hired your dream candidate in another state. Before celebrating, consider this: that single hire just triggered over 20 compliance requirements you need to handle. This remote work compliance checklist helps growing companies navigate the complex web of multi-state regulations without missing critical deadlines or facing penalties.
Managing a remote workforce requires an understanding of which states require registration before day one, how unemployment insurance varies by location, and why your employee handbook might violate laws you didn’t know existed.
The best part of all—Mosey automates many of the tasks and processes in this list to make your team’s life immeasurably easier, like payroll registration.
1. Pre-Hire Compliance: Before Remote Work Begins
Before your remote employees start their first day, you need to lay the groundwork. Missing these steps doesn’t just create paperwork headaches—it can trigger audits, penalties, and legal requirements that derail your growth.
Think of this phase as building the foundation for your remote work arrangement. Get it right, and everything else falls into place.
Business Registration Checklist
[ ] Determine if you’re “doing business” in the employee’s state: Depending on your operations and business structure, having even one remote worker can trigger registration requirements. Each state defines “doing business” differently, so check before making the offer.
[ ] Register for Certificate of Authority: File with the Secretary of State at least 30 days before your employee’s start date. Processing times vary, and operating without proper registration means daily penalties.
[ ] Establish a registered agent: Every state requires a physical address for legal notices. Virtual office addresses rarely qualify—you need an actual agent service.
[ ] Check local permit requirements: Some cities require home offices to have business permits. Yes, even for your employees working from their dining tables.
Tax Account Setup Checklist
[ ] Register for state payroll tax accounts: This includes withholding tax, unemployment insurance tax, workers’ compensation, and paid family and medical leave accounts, depending on the state. Set up accounts before running your first payroll. Processing times vary by state so it’s best to be proactive about opening the right set of tax accounts.
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[ ] Research reciprocity agreements: Some neighboring states have deals that simplify withholding if your employee lives and works in different locations. These agreements can save significant administrative burden.
[ ] Set up local tax accounts if required: Many cities, like New York and Philadelphia, have their own tax requirements. Don’t assume state registration covers everything.
Legal Requirements Checklist
[ ] Review worker classification laws: The line between employer or employee and contractor varies dramatically by state. California’s ABC test is completely different from Texas standards.
[ ] Update remote work agreements for state laws: Your standard agreement might violate state-specific requirements. Include clear language about workspace requirements and scheduling.
[ ] Verify fair labor standards classifications: Exempt employees in one state might be non-exempt in another. Salary thresholds and duties tests vary significantly.
[ ] Check the Americans with Disabilities Act implications: Remote work environment accommodations may differ from office worker requirements. Document your interactive process carefully.
2. Day One Remote Work: Essential Compliance Steps
First impressions matter, but first-day compliance matters more. Your new hire’s excitement can quickly turn to confusion if they’re missing critical information or you’ve failed to meet state requirements.
This phase transforms your preparation into action. Every checklist item here prevents future problems.
Payroll Setup Checklist
[ ] Confirm work location for tax withholding: Where is the employee when they work? If this differs from their home location, consult your tax and legal professional to correctly withhold taxes for each state.
[ ] Set up state-specific deductions: Beyond taxes, some states mandate disability insurance, family leave contributions, or transit benefits.
[ ] Configure workers’ compensation codes: Remote employees need different classification codes than office staff. Wrong codes mean incorrect premiums and potential claim denials.
[ ] Establish expense reimbursement timelines: California requires reimbursement within 30 days. Other states have different rules. Build these into your payroll calendar.
Required Documentation Checklist
[ ] Provide state-specific wage notices: New York requires detailed wage notices at hire. California has its own version. Missing these triggers automatic penalties.
[ ] Deliver electronic posters: Every state requires workplace posters, even for remote workers. Electronic delivery has specific requirements you must follow.
[ ] Issue remote work policy acknowledgments: Document that employees understand expectations for their virtual workplace, including work-purposes use of equipment.
[ ] Complete I-9 verification remotely: Remote access to documents isn’t enough. You need authorized representatives to physically examine documents within three days.
Remote Work Agreement Checklist
[ ] Define the primary work location: This determines which state laws apply. Be specific about where work will be performed.
[ ] Clarify flexible work hours expectations: Some states have predictive scheduling laws. Your agreement must balance flexibility with compliance.
[ ] Specify equipment and information security requirements: Who provides what? Who’s responsible for technical support? Clear agreements prevent disputes and data breaches.
[ ] Document workplace safety responsibilities: Occupational safety doesn’t stop at the office door. Define expectations for safe home offices.
3. First 30 Days: Building a Compliant Remote Workplace
The first month sets patterns that last. Use this time to establish compliant practices that scale with your growing team.
During this phase, you’re not just onboarding an employee—you’re building systems that work across states.
Handbook Compliance Checklist
If you’re not adopting umbrella policies across the company to comply with the strictest state rules, you need to customize your handbook for each location.
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[ ] Create state-specific addendums: Your core employee policies need state additions. Meal breaks, sick leave, and overtime rules vary dramatically.
[ ] Update leave policies for state requirements: Paid sick leave, family leave, and even voting leave have state-specific mandates that override your standard policies.
[ ] Address discrimination and harassment policies: Some states require specific language and training. California’s requirements differ vastly from federal standards.
[ ] Include remote environment guidelines: Define acceptable physical workspace standards and who’s responsible for maintaining them.
Benefits Enrollment Checklist
[ ] Verify state insurance mandates: Some states require specific coverage levels or types. Disability insurance is mandatory in several states.
[ ] Check paid family leave requirements: State programs may require enrollment and contributions. These layer on top of your company benefits.
[ ] Review retirement plan obligations: Some states mandate retirement savings programs for employers without plans. Know your obligations.
[ ] Confirm COBRA equivalents: Mini-COBRA laws in some states extend coverage requirements beyond federal rules.
Workers’ Compensation Checklist
[ ] Classify remote positions correctly: Clerical work from home has different rates than the same work in an office. Misclassification leads to audits.
[ ] Document home workspace setup: Photos and ergonomic assessments protect both parties if injuries occur. Some states require these records.
[ ] Establish injury reporting procedures: How do employees report injuries during the course of employment at home? Clear procedures prevent coverage disputes.
[ ] Train on covered activities: Walking to the kitchen for coffee during work hours—covered or not? Employees need clarity on boundaries.
4. Ongoing Remote Work Compliance Requirements
Compliance isn’t a one-time event. These ongoing requirements keep you legal as laws change and your team grows.
Think of this section as your maintenance schedule—regular attention prevents major breakdowns.
Wage and Hour Checklist
[ ] Monitor meal and rest break compliance: California requires specific timing. Other states have different rules. Your timekeeping system must track accurately.
[ ] Track overtime correctly by state: Daily overtime in California, weekly in most states. Some states have unique rules for specific industries.
[ ] Verify minimum wage updates: Rates change annually in many states. Some cities have higher minimums than their states.
[ ] Document workweek definitions: Your 40-hour workweek might start Sunday in one state, Monday in another. Consistency prevents calculation errors.
Leave Policy Compliance Checklist
[ ] Calculate accruals by state rules: Sick leave accrues differently across states. Front-loading might work better than accrual tracking.
[ ] Track localization of work provisions: Where work is performed determines which leave laws apply. Mobile workers create complexity.
[ ] Coordinate federal and state leaves: FMLA might run concurrently with state leave—or not. Know how leaves interact.
[ ] Manage leave requests properly: Some states require specific notice periods and documentation. Build these into your process.
Download the state-by-state HR guide
Streamline your hiring process with a list of employment requirements in every state and eliminate the guesswork.
Tax Filing Checklist
[ ] File quarterly withholding returns: Every state has different deadlines and requirements. Missing one triggers penalties across states.
[ ] Submit unemployment reports: Quarterly wage reports keep your rates accurate and avoid audits. Each state has unique forms.
[ ] Track multi-state work days: Employees working temporarily in other states may trigger additional filing requirements.
[ ] Prepare for year-end variations: W-2s need state-specific information. Some states require additional year-end reports.
5. Workplace Safety for Remote Work
Workplace safety issues don’t disappear when employees work from home. In fact, they become more complex without direct oversight.
Your obligations under occupational safety laws extend to remote work environments. Here’s how to stay compliant.
Home Office Safety Checklist
[ ] Conduct virtual workspace assessments: Review lighting, ergonomics, and general security of workspace via video tours. Document findings and recommendations.
[ ] Provide safety training for home offices: Trip hazards, electrical safety, and ergonomics matter at home too. Generic office training isn’t enough.
[ ] Establish equipment standards: Define minimum requirements for desks, chairs, and lighting. Some states may require you to provide these.
[ ] Create emergency procedures: Fire evacuation is different at home. Ensure remote employees know how to stay safe during emergencies.
Workers’ Comp Compliance Checklist
[ ] Define work-related activities clearly: Is walking the dog during lunch covered? What about injuries while getting coffee? Clear definitions prevent disputes.
[ ] Document job descriptions for remote roles: Accurate job duties descriptions determine proper classification and rates. “Computer work” isn’t specific enough.
[ ] Maintain injury logs properly: OSHA still requires injury tracking for remote workers. Know what counts as work-related at home.
[ ] Investigate incidents thoroughly: Without witnesses, investigations rely on documentation. Create protocols for remote incident investigation.
OSHA Requirements Checklist
[ ] Provide required safety training: General safety training requirements don’t disappear for remote work. Adapt training for home settings.
[ ] Maintain safety records: Some OSHA recordkeeping applies to home offices. Know which forms and logs you need.
[ ] Conduct hazard assessments: You’re still responsible for identifying and mitigating workplace hazards, even in employee homes.
[ ] Report serious injuries: Hospitalization reporting requirements apply regardless of work location. Know your deadlines.
6. Building Your Remote Work Compliance System
Manual compliance tracking breaks down quickly as you grow. Thus, building scalable systems now saves headaches later.
These topics transform compliance from a burden into a competitive advantage through smart automation and process design.
Essential Tools Checklist
[ ] Multi-state payroll system: Your payroll provider must handle varying state requirements automatically. Manual calculations invite errors.
[ ] Time tracking with location data: Know where work happens, not just when. This data drives proper tax withholding and compliance.
[ ] Leave management platform: Tracking various state accruals manually is impossible at scale. Automated systems prevent errors.
[ ] Document management system: Store everything employees sign, acknowledge, and submit. File and address official mail notices, fines, and reports for your records. Audit trails matter more than ever.
Automation Checklist
[ ] Automate registration deadlines: Never miss a filing deadline again. Systems should alert you before requirements trigger.
[ ] Build compliance into onboarding: New hire workflows should automatically trigger state-specific requirements based on location.
[ ] Create policy update systems: When laws change, your handbooks should update automatically with state-specific modifications.
[ ] Set up monitoring alerts: Know when employees work in new states or when nexus thresholds approach. Proactive beats reactive.
Scalability Checklist
[ ] Standardize core processes: Build consistent approaches that accommodate state variations without starting from scratch each time.
[ ] Create state playbooks: Document requirements for each state you operate in. New hires in existing states should be simple.
[ ] Train managers on variations: Employees and managers need to understand which rules apply where. Regular training prevents mistakes.
[ ] Partner with experts: Some complexity requires expertise. Know when to build internally versus partnering with specialists.
Downloadable Resources
We’ve created practical tools to implement this checklist immediately:
- State-by-State HR Hiring Guide - Unlock the hiring guidelines for HR success in every state, plus DC, at your fingertips.
- HR Compliance Guide - Learn how to measure HR success and develop compliance strategies.
- Multi-State Compliance Quiz - Spot your compliance blind spots in just 3 minutes
Simplify Compliance with Mosey
Managing this checklist manually means constant spreadsheet updates, deadline tracking, and legal research. One missed requirement can trigger thousands in penalties.
Mosey automates most of the items on this checklist to simplify compliance for multi-state teams. We handle state registrations before you need them. We track filing deadlines across all jurisdictions. We monitor law changes and alert you to new obligations. In other words, we turn remote workforce compliance from your biggest risk into a seamless process.
Instead of managing compliance spreadsheets, focus on building your team. Request a free demo and see how Mosey can totally transform your multi-state compliance.
