Managing Out of State

Managing employees working outside Indiana

Working overseas

For employees working outside the U.S., contact the vice president and general counsel’s office.

Standard Operating Procedure (SOP)
Last Updated: January 2021

This SOP provides guidelines for managing employees who work outside Indiana for more than 90 consecutive days within a 12-month period. It’s important to follow these procedures to ensure compliance with all applicable state and federal laws.

Establishing out-of-state work arrangements

If you’re considering having an employee work from another state for more than 90 consecutive days in a 12-month period, here’s what you need to do:

Reach out to IU Human Resources to discuss the potential employment and financial impacts. This includes understanding state-specific requirements for wages, time off, workers’ compensation, benefits, payroll, and taxes.

  1. The unit must identify the state where the employee will be working in HRMS by submitting an eDoc. You can do this when you:
    • Hire
    • Promote
    • Demote
    • Transfer
    • Maintain Job Data
  2. In the eDoc, go to the “Primary Physical Work Location” tab and fill in the required fields:
    • Work Location Country
    • Work Location State
  3. The fields are required on all Hire, Promote, Demote, and Transfer eDocs.
  4. Update the state or country that the employee is working from in the eDoc.

Important notes:

  • Updating the Work Location State will affect the tax location in the eDoc and the employee’s payroll tax withholding. Please review the Job Data section that includes the Tax Location value.
  • Updating the employee’s address in HRMS does not change their payroll tax withholding. An eDoc is required for this.
  • If the employee has multiple positions, all positions must have the same Primary Physical Work Location.

Changes in work location: return to Indiana or relocate further

  1. If an out-of-state employee moves back to Indiana or relocates to a different state or country, update their Primary Physical Work Location data in HRMS.
  2. If the employee is moving to a different state, contact IU Human Resources to determine the potential employment and financial impacts.

Terminating employees working in another state

  1. When an out-of-state employee is terminated, contact IU Human Resources to determine any employment or payroll impacts.
  2. Notify the appropriate offices of the termination:

Additional resources

This SOP was prepared by IU Human Resources (IUHR) in collaboration with the Office of the University Controller (UCO), the Office of the Vice President and General Counsel, and the Office of the Executive Vice President for University Academic Affairs.

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