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Managing Employees Working in Another State

Standard Operating Procedure (SOP)
Last Updated: January 2021

Rationale

This SOP provides the process for managing employees working in another state for more than 90 consecutive days within 12 months. This process will ensure that all units follow uniform procedures when establishing out-of-state work arrangements. Indiana University policies are based on federal and Indiana state laws. When an employee’s permanent workplace is in another state, the unit must consider the state's employment laws.

For employees working overseas, contact the vice president and general counsel's office.

Procedures

Units considering having an employee work from another state for more than 90 consecutive days within 12 months are responsible for contacting IU Human Resources, processing an eDoc identifying the work location state, and ensuring compliance with applicable state employment laws. An out-of-state employee typically does not include the following:

Employees Working in Another State

Contact IU Human Resources

Contact IU Human Resources to determine the potential employment and financial impacts to the unit. The effects result from state-based employment requirements, such as wage and hour rules, time-off, workers’ compensation, health care, retirement, payroll, and taxes.

If the individual is working overseas, contact the vice president and general counsel’s office.

Process eDoc

  1. The unit must identify the state where the employee will be working from in HRMS  by submitting an HRMS eDoc using one of the following:
    1. Hire
    2. Promote
    3. Demote
    4. Transfer
    5. Maintain Job Data
  2. In the eDoc, there is a tab called Primary Physical Work Location, which contains two fields.
    1. Work Location Country
    2. 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.
  5. Updating the Work Location State will impact the tax location in the eDoc. Please review the Job Data section that includes the Tax Location value.
  6. Updating the Work Location State or Work Location Country does affect the employee’s payroll tax withholding.
    1. Updating the employee’s address in HRMS does not change the employee’s payroll tax withholding. An eDoc must be processed to update an employee’s state tax withholdings.
  7. If the employee has multiple positions, all of the positions must have the same Primary Physical Work Location.
Screen shot showing work location and tax location fields

When Employees Return to Indiana or Relocate to a Different State

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

Terminating Employees Working in Another State

  1. When a unit is aware that the out-of-state employee will be terminated, contact IU Human Resources to determine any employment or payroll impacts.
  2. Notify the following offices of the termination.
    1. If the individual is an Academic appointee, contact the campus Academic Affairs office.
    2. If the individual is a staff or temporary employee, contact the campus HR office or IU Human Resources. 
    3. If the individual is working overseas, contact the vice president and general counsel’s office.

Additional Resources

This SOP was prepared by IU Human Resources (IU HR) 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.