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Again, you withhold and remit state taxes for the state where the employee works.

For the three months of training, you must withhold taxes for South Carolina even though the employee lives and primarily works in North Carolina.

Don’t let confusion deter you from hiring out of state employees.

Depending on the states and how long the employee is there, you might have to withhold taxes for the state where the employee is working, even if they’re only there for one day.

Check the state’s rules for specific details on how long an employee must temporarily work there before you start collecting taxes for the work state.

But, Wyoming doesn’t collect income taxes, meaning you don’t have to collect anything.

You also don’t have to register with Wyoming’s tax department.