The remote workforce ushered in by the COVID-19 pandemic seems here to stay, resulting in the need to meet new payroll reporting requirements.
If a company has remote employees in a state where it hadn’t already registered, there will be certain thresholds being met that could call for registration in states where those employees are located.
If certain thresholds are met, such as the number of days worked in-state or amount of compensation, then the company needs to register for payroll reporting with those states. Note that the company may be required to complete other registrations with the state aside from just income tax withholding.