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REMOTE EMPLOYEES

Hiring a remote employee in New Hampshire

Your company is in another state and one employee lives and works from home in New Hampshire. Which state's taxes apply, unemployment, paid leave and New Hampshire's employer rules, each with its official source.

Facts checked on October 5, 2026 against the official sources listed at the end of this page. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

New Hampshire at a glance

Income tax
No income tax on wages
Unemployment
$14,000 wage base, 2.7% new employer
Paid leave
NH Paid Family and Medical Leave (NH PFML)
New hire report
Within 20 days

Which state's taxes apply

Work state
New Hampshire has no income tax on wages, so nothing is withheld for New Hampshire.Source: NH Department of Revenue Administration, Interest & Dividends Tax (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in New Hampshire for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

No state income tax withholding: neither state taxes these wages.

No New York withholding: the employee does no work in New York.

Unemployment

New Hampshire: the employee works from home there, so the work is localized in New Hampshire.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in New Hampshire, so the work is localized in New Hampshire: pay New Hampshire unemployment tax, not your company state's.

Agency
New Hampshire Employment Security (NHES)Source: NHES, Register Your Company in NH (opens in a new tab), checked October 5, 2026
Wage base
$14,000 Fixed by lawSource: NHES, Employer Claims & Taxes (Tax Rates) (opens in a new tab), checked October 5, 2026
New employer rate
2.7% 2.7% for every new employer, less the Fund Balance Reduction NHES sets each quarter (1.0% in the first and second quarters of 2026; later quarters not confirmed) Surcharges includedSource: NHES, Tax Rate Frequently Asked Questions (opens in a new tab), checked October 5, 2026

Open the account: New Hampshire payroll tax registration

NH Paid Family and Medical Leave (NH PFML) (opens in a new tab)

Status
VoluntarySource: NH PFML, Overview (opens in a new tab), checked October 5, 2026
Total rate
Set by the insurer or planSource: NH PFML, Overview (opens in a new tab), checked October 5, 2026
Employee share
Set by the insurer or planSource: NH PFML, Overview (opens in a new tab), checked October 5, 2026
Employer share
Set by the insurer or planSource: NH PFML, Overview (opens in a new tab), checked October 5, 2026
Small employers
NoneSource: NH PFML, Employer Frequently Asked Questions (opens in a new tab), checked October 5, 2026

Register before the first payroll: the steps are on New Hampshire payroll tax registration.

New Hampshire employer rules

Employment law applies where the employee works, so these follow the employee into New Hampshire.

Final pay
Fired: Within 72 hours of termination Quit: Next regular payday, or within 72 hours if the employee gave one pay period's noticeSource: NH Department of Labor, Wages and Work Hours FAQs (opens in a new tab), checked October 5, 2026
Pay frequency
Weekly or biweekly; semi-monthly or monthly only with NH Department of Labor permissionSource: NH Department of Labor, Employer Compliance Checklist (PDF) (opens in a new tab), checked October 5, 2026
Pay notice
In writing at hire and on any change: rate of pay, pay period, payday and all fringe benefit policies. Keep a copy signed by the employee on file.Source: NH Department of Labor, Wages and Work Hours FAQs (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the start date.Source: NHES, Business Compliance (New Hire Reporting) (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate; employers must obtain and keep the federal work-eligibility (I-9) documentsSource: NH RSA 275-A (Citizens Job Protection), 275-A:4-a and 275-A:4-b (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: NH Department of Labor, Protective Legislation (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in New Hampshire, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on New Hampshire

WORKLIO HCM

Payroll for employees who work from home in another state

We help open state accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Worklio HCM calculates, deposits and files your payroll taxes in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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