When employees move out of Colorado, it can create complications for Overcomers’ who is not registered to do business in the employee's new state of residence. This is primarily due to tax and legal considerations. Each state has its own set of regulations regarding income tax withholding, unemployment insurance, and workers' compensation. If a company (Overcomers) is not registered in a particular state, it becomes difficult to comply with these state-specific requirements for employees residing there.
For Overcomers, since we are not currently registered to do business outside of Colorado, it poses a challenge to maintain W2 employees who relocate to other states. The administrative burden of managing payroll taxes and ensuring compliance with different state laws can become overwhelming. Additionally, there may be legal ramifications for both the employer and the employee if proper procedures are not followed.
Learn more about these requirements and further directions here: Contractors (1099s).
While we highly value our counselors and aim to retain every team member, circumstances sometimes necessitate employment termination. Navigating through stringent labor laws makes reclassifying our clinicians from W2 to 1099 equally challenging. However, if the following requirements are met, the 1099 option could circumvent the issues when a counselor moves out of state.
As a PMHNP, you are typically contracted as a 1099 contractor, so moving to a different state has no ramifications. Please be sure to notify HR (hr@overcomewithus.com) if your business name, address, etc., changes.
As a support team member, it is possible to transition you from a W2 employee to a 1099 contractor in the event you move out of state.
If your spouse serves in the military and receives orders for reassignment to another base or state, yet Colorado remains your designated 'home' state—evident through your payment of Colorado taxes, voter registration, etc.—you can retain your W2 employment status with Overcomers.