NPRC Studies & Recommendations

Out-of-State Wage Reporting: State UI Tax Reporting Methods and Recommended Practices

This report addresses an area of concern for employers with employees working in multiple states that need to pay unemployment insurance (UI) taxes. Credit for Out-of-State (OOS) wages is an accommodation for those employers who have employees that have been transferred to another state in the same calendar year. Employers are generally permitted to take credit for the taxes paid on wages paid in the prior state, thus avoiding double taxation on those wages.

This report will explain the various approaches states have taken to accommodate OOS wage reporting. It will provide recommended processes as well as identify processes that cause considerable problems for employers and agencies.