{"id":4605,"date":"2018-10-17T15:20:41","date_gmt":"2018-10-17T22:20:41","guid":{"rendered":"https:\/\/in.nau.edu\/human-resources\/?page_id=4605"},"modified":"2026-03-12T16:42:19","modified_gmt":"2026-03-12T16:42:19","slug":"departmental-procedures-for-out-of-state-employees","status":"publish","type":"page","link":"https:\/\/in.nau.edu\/human-resources\/departmental-procedures-for-out-of-state-employees\/","title":{"rendered":"Payroll – Departmental Procedures for Out of State Employees"},"content":{"rendered":"

Procedures for Departments with Employees Working from a State Other Than Arizona<\/h2>\n

Northern Arizona University is obligated to follow state\u2011specific laws for its employees working from another state. NAU is also required to track employees who work out of state in order to comply with tax withholding for the appropriate city, county, and state in which the employee works, and to remit unemployment taxes and worker\u2019s compensation premiums to the state in which the employee conducts their work. More and more states\/cities have also adopted employment and labor laws that differ from those in Arizona, including higher state\/city minimum wage requirements and state\/city\u2011specific FLSA\u2011related exempt salary thresholds, making this situation more complicated and costly. To maintain compliance, NAU conducts an annual review of relevant state laws to ensure proper classification and wage practices for employees working outside Arizona.<\/p>\n

Due to the complexity and cost of complying with each set of state specific laws and unique tax requirements, an\u00a0employee working from another state requires pre-approval from the department, Vice President or Provost, and Human Resources.<\/strong><\/p>\n

Out of state work may be permitted in certain business-justified or mission critical situations with advance approval (see form).\u00a0Departments will be charged an annual $1000 fee for each hire or transfer of an employee that is working from a state other than Arizona. This fee is for the administrative costs to manage and monitor payroll tax and employment related compliance.\u00a0Any additional costs (higher payroll taxes, extra benefits required, etc.) incurred for employing workers in other states will also be charged as employer-related expenses (ERE) to the funding for that position.<\/p>\n

In order to comply with these requirements, departments are required to do the following.<\/p>\n