Navigating Employement Requirements - State by State

In many ways, the United States operates like a conglomeration of little mini countries. When ADP, currently the largest payroll processor in the world, started, they created  punch card machines for hourly workers clocking in only in specific states. When Gusto first started, they only supported a few states and worked up to adding more. The ways that we compensate teams have evolved quite a bit in the span of forty years.

Now, when companies are signing up for a payroll system, it's a given that that payroll system should support the whole U.S., and increasingly companies want the flexibility to hire workers anywhere in the world. But each town, city, state, and country govern labor differently. Some of the most common difference are

• Hiring (each local and state jurisdiction have different tax rates that need to be calculated)

• Terminating (for example some states require you cut a physical check for an employee’s last days, whereas others are ok with an ACH transfer)

• Intellectual property treatment (for example, governing knowledge or skills that an employee can bring from one company to another).

This is why we at Franklin have built out a modern payroll system that provides more flexible tools for companies to compensate and manage their teams however they see fit. This means:

• No more constraints on pay frequency with unlimited payroll runs

• No long lock ups of cash - 2 day ACH processing (which beats the industry standard of 5-11 days)

• Custom payment types - severance, bonuses, etc., we have it all accounted for

• Currency variability - choose between USD, cryptocurrencies, or both!

• Benefits management - 401k contributions, health care plans, everything you need to incentivize and properly care for you workers

• Baked in rules on a per city and state basis about how to compensate and manage your employees.

What is required to get started?

• Company address

• Federal EIN

• Depending on which states you have team members, you’ll also need to have employer identification numbers in that state. Corporate registrars like CorpNet can streamline the application process. You can also reach out to us for help.

Interested in using Franklin? Sign up here or schedule a demo.