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Company says California worst for employment tax laws

April 14, 2014

California is the state with the most complex and burdensome employment tax laws according to XpertHR’s new “Payroll Misery” index, which analyzes the degree of burden placed upon employers by each state’s payroll and employment tax laws. Tennessee ranked as the best state for employment tax laws.

XpertHR, a provider of legal information to employers, compared state payroll and employment tax laws as they apply to private employers to determine an overall ranking of the worst and best states for compliance. It selected the 10 most common requirements an employer must comply with under each state’s relevant laws and rated the relative degree of employer burden imposed by each requirement on various scales, resulting in a 50-state ranking of states based on payroll and employment tax burden.

The best states include:

  1. Tennessee
  2. Florida
  3. South Dakota
  4. Nevada, New Hampshire, Wyoming (tied)
  5. Alaska and Oklahoma (tied)

The worst states include:

  1. California
  2. New York
  3. New Jersey
  4. Hawaii
  5. Maryland and Virginia (tied)