Remote jobs now dominate the hiring landscape, and for good reason: employees are no longer tied to a specific location, while employers benefit from expanding their talent search nationwide. Technology makes it easy to stay connected, but hiring out of state employees in Mississippi can create complex issues. Employers who fail to comply with each new state’s laws may be subject to significant fines and fees
If your company doesn’t already have an economic nexus in Mississippi, hiring employees can be complicated. That’s why SixFifty has developed multistate employer tools. Our goal is to simplify the process and keep costs down, giving you the freedom to hire the best employees for the job—no matter where they live. Now it’s easy to register your business, establish an economic nexus and comply with each state’s unique employment laws, without hiring a lawyer in every new state.
Scenario 1: Employee works from home in another state
Remote work makes it possible for top employees to move to another state, while still working for you. Whereas out-of-state moves used to mean a new job search, workers are now able to maintain their position from anywhere in the country. Whether they’re moving to be closer to family, supporting a partner’s new job or looking for a lower cost of living area, there’s no reason they can’t continue working for you. However, if your company doesn’t already have an established economic nexus in Mississippi, you’ll need to register with the state in order to stay compliant.
Scenario 2: Hiring out-of-state employees in Mississippi
Alternatively, you might wish to hire employees who are already living out of the state. You can hire workers in Mississippi—but they’ll be subject to Mississippi’s state laws and worker protections. Again, if you don’t already have an established economic nexus in the state, you’ll need to register. Even if your company is headquartered in New York, Mississippi’s laws will apply to any worker living and working there.
Multistate Employer Registration Factors to Consider
Whichever scenario applies to your hiring needs, you are required to register in each new state. Otherwise, the Department of Labor may hold your company liable for failing to comply with state-specific employment laws, and the state tax boards may levy additional penalties.
SixFifty has identified five core areas of focus for out-of-state employers. We’ve simplified the remote hiring process by allowing employers to automatically generate state-specific employment tools. This makes it possible for even small businesses to hire out-of-state employees.
1. Mississippi Employment Registration
Registering your business in Mississippi establishes an economic nexus. Additionally, you’ll need to report new hires to the state, and obtain appropriate insurance and workers’ compensation coverage. Employers have 20 days from the date of hire (or the date an employee started working in Mississippi) to do so.
- Obtain a registered agent
- Register to do business in Mississippi
- Report new hire to the Mississippi Department of Employment Security
- Register for unemployment insurance
- Report unemployment insurance account to payroll provider
- Obtain workers’ compensation coverage or update the policy
2. Mississippi Tax Registration
Employers have tax obligations in each new state. Mississippi requires employers to obtain a income tax withholding account number from the Department of Revenue, complete state income tax forms and register for a sales tax license. Failure to do so could expose the company to fines and other penalties.
- Register for income tax withholding account
- Obtain the completed state income tax withholding form from the employee
- Register for a sales tax license or permit
3. Mississippi Employment Policies
Mississippi employers are required to provide jury duty leave, in addition to standard federal policies that apply in every state. However, employers are welcome to add more employment policies and procedures as needed, so long as they don’t conflict with the jury duty or federal employment policy requirements.
- Review employee handbook for compliance
- Update policies or add new leave policies as needed
4. Mississippi Required Employment Policies (May 2023)
- Jury Duty Leave
5. Mississippi Employment Implications
When hiring in a new state, employers must take care to ensure that their wages, overtime policies, payroll policies and more are compliant with state law. Employers also need to consider insurance coverage and whether there are any COVID-19 state laws that could affect their employees. Finally, non-compete provisions may be limited by state law.
- Ensure non-compete provisions comply with Mississippi law
- Confirm the employee is paid at least the minimum wage
- Review the applicable overtime laws
- Confirm the payroll practices meet the payment frequency standards in Mississippi
- Consider whether insurance extends coverage to employees in Mississippi
- Consider COVID-19 laws that affect the employee
6. Mississippi Signage
Employers are required to post two types of signage in an area that employees can access. The state has not set any rules about how to distribute signage to exclusively remote workers. However, making signage accessible on the company website, in an accessible web folder or in company communication channels is generally acceptable.
- Post or distribute required signage
Simplify Multistate Compliance with SixFifty
The process of maintaining compliance can be complex and extremely nuanced for companies unfamiliar with Mississippi employment laws and standards. It’s why SixFifty has compiled an extremely useful tool for businesses hiring out-of-state employees in Mississippi. To simplify the process of hiring out-of-state employees in Mississippi or supporting remote employees on-the-move, check out our 50 State Hiring Kit.