Tax FAQ

Out-of-State Fully Remote Work FAQs

Who does the out-of-state employment policy apply to?

The out-of-state employment policy applies to anyone who is an employee of the university. This includes faculty, staff and post-docs. This also includes both part-time and full-time positions as well as exempt and non-exempt positions.


If I want to hire someone to work out-of-state, will I always be given permission by the university to do so?

Working fully remote from another state is generally not permitted at the university. However, employing an out-of-state employee may be approved in very limited situations when warranted due to exceptional and unique circumstances. If you are looking to employ an employee outside of the state of Ohio, please contact oosemployment@case.edu, Out-of-State Employment and Hybrid Staff Coordinator, within the Tax Department of the Controller’s Office for further information and guidance. It is important to contact the Controller’s Office prior to making your decision to employ any individuals out-of-state.


If I am an out-of-state, fully remote employee what time code should I use in my timesheet?

All out-of-state, fully remote employees should use the hybrid codes when updating their timesheet. If they are an exempt employee, please use REGEH. If they are a non-exempt employee, please use REGWH for days where overtime is not worked and RGWHO for days where overtime is worked (OT requires prior supervisor approval). 


Why am I being charged a one-time $10,000 fee for an out-of-state, fully remote employee?

When the university employs someone who works outside of the state of Ohio additional procedures to address legal compliance and related risk must be taken. The $10,000 fee, which is one-time and will be assessed for any new-hire or existing employee who moved out of state from FY24 on, covers the cost of state registration in the state of employment, legal assessment and assistance fees and internal overhead to manage the out-of-state employee. 


Can the $10,000 fee be lowered or waived?

No. The $10,000 fee cannot be lowered or waived. It is a non-negotiable fee.


Can I use funds from a government sponsored grant to cover the $10,000 fee?

No. Funds from a government sponsored grant are not eligible to be used to cover any part of the $10,000 fee.


Are there additional charges or responsibilities that a hiring department may be responsible for?

There may be other expectations the hiring department must take responsibility for and adhere to, including state-specific financial implications, to stay in continued compliance with having an out-of-state employee. These may include, among other items, monthly stipends for cell phones, internet, office supplies, etc. There may also be specific trainings that the supervisor and/or employee may need to take to remain in compliance with state laws, such as those related to harassment in the workplace. Every state is different and unique. To ensure that all responsibilities are known and followed, please contact oosemployment@case.edu, Out-of-State Employment and Hybrid Staff Coordinator, within the Tax Department of the Controller’s Office for further information and guidance.


Are certain positions ineligible for an out-of-state, fully remote work arrangement?

Decisions on remote, out-of-state work will be made on a case-by-case basis. Positions which require in-person and/or physical, on campus work are not eligible for out-of-state, fully remote work arrangements.


How is out-of-state employment different from the Staff Hybrid Remote Work Program?

The Staff Hybrid Remote Work is a separate program within the university that operates under the assumption that the staff working a hybrid schedule is doing so in the state of Ohio. Any employee who is working a hybrid schedule, but is doing so outside of the state of Ohio should contact oosemployment@case.edu, Out-of-State Employment and Hybrid Staff Coordinator, within the Tax Department of the Controller’s Office, for further guidance as they would now fall under the policies for out-of-state work arrangements. For more information on the Staff Hybrid Remote Work program, please see the following HR site: https://case.edu/hr/worklife/staff-hybrid-remote-work-program.


What if full-time work outside of the state of Ohio is a natural part of my employment at CWRU?

Employees of the university who are expected to work full-time outside of the state of Ohio, such as those associated with the CWRU Anesthesia program in Houston, TX or Washington, D.C., for example, are outside of the scope of this policy. To ensure that the university has correctly noted your employment outside of the state of Ohio, please contact oosemployment@case.edu, Out-of-State Employment and Hybrid Staff Coordinator, within the Tax Department of the Controller’s Office. She will help ensure that our records are correct and that you have proper tax withholding. The $10,000 fee will not be assessed in these situations.


Does this policy apply to international employees who work fulltime outside of the United States?

No. This policy does not apply to international employees who work fulltime outside of the United States.


I work outside of the state of Ohio from time-to-time to attend meetings, work on projects, attend conferences, etc. Does this out-of-state policy apply to me?

No. This policy only applies to those employees who are fully remote and working out-of-state. The university recognizes that there are many normal and usual circumstances where an employee will work from time-to-time outside of the state of Ohio. This type of out-of-state work should be considered, and recorded as, regular time within the HCM recordkeeping system.


I have already hired an out-of-state, fully remote employee. What should I do now?

Please contact oosemployment@case.edu, Out-of-State Employment and Hybrid Staff Coordinator, within the Tax Department of the Controller’s Office for further information and guidance. It is important to contact the Controller’s Office prior to making your decision to employ any individuals out-of-state.


What are the tax implications for an out-of-state, fully remote employee?

There could be various and different tax implications for an out-of-state, fully remote employee. To ensure that your taxes are being withheld properly, please contact oosemployment@case.edu, Out-of-State Employment and Hybrid Staff Coordinator, within the Tax Department of the Controller’s Office who will help coordinate with Payroll to ensure proper tax withholding.