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Esense_08(Newbie)Newbie
13 Aug 2025

Hi! We have a few virtual employees whose residential addresses in states where we do not a have office. Currently, they are mapped to one of our office locations for payroll tax purposes.

 

Could you please advise whether this approach is appropriate, or if their payroll taxes should instead be deposited in the respective states where they reside, considering their work location is virtual?

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2 replies
270 views
2 replies

All replies

PayrollDeanne(Taxicorn)Taxicorn
13 Aug 2025

Hiya @Esense_08 👋


That's not an ATO matter 🤓 Refer to the relevant state/territory Payroll Tax resources.


Typically, there is a hierarchy of decisions, like in the nexus provisions:

  1. the employee’s principal place of residence
  2. the employer’s registered ABN address or principal place of business
  3. the place where the wages are paid to the employee
  4. the place where the services are mainly performed.

Deanne

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RefundOrBust(Enthusiast)Enthusiast
13 Aug 2025

Short answer, has to be where they reside and complete their work. It’s a pain! Make sure you check all the thresholds for relevant states just to make sure you actually have to register in each state. Good luck! 😊

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