Posted on June 27, 2011

Multi State Unemployment Coverage

If an employee performs all services in one state, the employer pays unemployment to that state.

If an employee performs services in more than one state,there are four factors used to determine which state the employer is to pay unemployment. The following four factors, set forth by The Department of Labor, can be applied in successive order to determine where an employer should pay state unemployment insurance. Once one of these factors establishes jurisdiction no other factors need be determined.

  1. Localization of Services
  2. Base of Operations for the Employer
  3. Direction or Control
  4. Employee’s State of Residence