The Convenience Of Employer (COE) rule is an exception to the general golden rule for establishing what work location to use for remote employees.
If you have questions about what work address to use for an employee in Gusto, work with a tax advisor or accountant—Gusto cannot advise.
When an employee lives in a different state than where an employer is located, determining where income tax is owed can sometimes be complicated.
Meeting the criteria for when a remote employee working in another state is the “employer’s convenience” varies by state—it’s important to familiarize yourself with state-specific criteria found in the resources below.
Employers in states where the COE rule may apply should work with their tax advisors and accounting partners to:
Reminder: If you have questions about what work address to use for an employee in Gusto, work with your tax advisors or accountants—Gusto cannot advise.