"We thought payroll was handling this" is one of the most common lines businesses say after a notice arrives, and it's usually true, payroll was running fine. The problem is that payroll processing and payroll compliance are not the same function, and registrations, work states, and filings depend on information the provider was never given. Here's why these gaps slip past even a provider that's doing its job correctly, and who actually owns closing them.

Hiring a remote employee in another state can trigger withholding registration, an unemployment account, and filings your payroll software never set up. Here is what that hire sets in motion and what to check first.