UAMS ADMINISTRATIVE GUIDE ________                          _   
 NUMBER:    4.5.29                                                                                     DATE: 10/1/2006___
 REVISION:                                                                                                  PAGE: 1

SECTION:

  HUMAN RESOURCES                                                            

AREA:

   EMPLOYMENT

SUBJECT:

   EMPLOYMENT OF OUT-OF-STATE RESIDENTS

POLICY

 

UAMS recognizes the occasional need to hire an employee who will continue to live outside Arkansas.  In such instances, UAMS is required to treat the employee under certain laws of his resident state, including our obligation to withhold and remit state taxes to that state.  Unemployment costs are incurred within the state of Arkansas, since this is the institutions base of operations, regardless of the employee’s resident state.  Worker Compensation liability could fall under Arkansas and/or the employee’s resident state.

Applicants who reside out-of-state currently, but who will move into Arkansas if offered employment, are not affected by this policy.

Departments who wish to hire employees who will remain our-of-state residents should allow approximately six (6) weeks for UAMS to establish the proper relationships, especially tax ID, with the resident state, unless such relationship already exists or unless the state does not require withholding.  If the employee is paid with such tax ID, the employee will contribute to Arkansas withholding and have to file Arkansas taxes, regardless of his resident state.

 

 PROCEDURE

  1. At the time that serious consideration is being given to employment to an applicant who will remain out-of-state resident, the hiring department should contact Human Resources and Finance/Payroll to ensure that UAMS has a tax ID with the applicant’s resident state.  States where we currently have a relationship are listed below.
  2. If the employee is hired and we do not have a tax ID with his state, Finance/Payroll will apply for the Tax ID number. 
  3. When the tax ID is received (approximately 6 weeks), Finance/Payroll will contact the department with this information.
  4. As the department runs SAP transaction PA40, New Hire (dept), they will ensure that the Resident State (infotype 0207) and the Work Tax State (infotype 0208) reflect the employee’s residency state (not Arkansas).
  5. The employee is responsible for securing and signing the proper state withholding tax form, and submitting this to Human Resources.  Such forms should be available to the employee in his local area, or they may be available at his state’s web site.
  6. Finance/Payroll will ensure that withheld taxes are remitted and reported to the proper state.

Addendum: 

States for which UAMS currently has a Tax ID number

California

Kansas

Louisiana

Missouri

New Mexico

New York

North Carolina

Ohio

Oklahoma

South Carolina

Mississippi

Utah

 

States which currently do not require withholding taxes

 

Alaska

Florida

Nevada

New Hampshire

South Dakota

Tennessee

Texas

Washington
Wyoming