I’m Unsure About The State Unemployment Tax Filing Issues For Reporting Out-Of-State Residents. Do I Need To Register In Both States?
Our business is located in Indiana and about 10 miles away from the Indiana/Kentucky border. We have been steadily growing and have recently received applications from a few Kentucky residents wanting to work for us. I’m unsure about the state unemployment tax filing issues for reporting out-of-state residents. Do I need to register in both states?
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Tax Professional Answers

Kenneth Handy
The 1st criteria for determining where to report an employee for unemployment tax purposes is based on where the employee is working. Since your business is solely located in Indiana, you would report all employees (both IN and KY residents) on Indiana unemployment tax return filings.
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287 weeks ago

Michael Cash
You will owe unemployment tax to the state where the employee works so if you have Kentucky residents working in Indiana you will pay unemployment tax on their wages to Indiana.
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286 weeks ago