Working Outside of Michigan

Updated October 12, 2023

Roles and Responsibilities

Employees who will work remotely are responsible for:

  • Working with unit staff to ensure compliance with the work agreement, applicable laws, policies, and procedures.

  • Making any necessary adjustments for their personal information, income taxes, and benefits.

Unit staff is responsible for ensuring compliance with the work agreement expectations, applicable laws, policies, and procedures. Out-of-state remote work arrangements may involve increased costs to departments. 

For employees who are not "United States workers," e.g., employees in H-1B, TN, E-3, or J-1 status, call the International Center at (734)-764-9310 to discuss immigration compliance.

Employment Law

Considerations include:

  • Minimum wage

  • Overtime regulations

  • Classification as exempt

  • Meal and rest periods

  • Travel-time pay

  • Family/medical leave provisions

When employees are working in another state as their regular location of employment, there may be times when we are required to follow local employment laws. For units that need legal advice regarding compliance with out-of-state work requirements, the Office of the General Counsel (OGC) may be able to retain outside counsel at the unit’s expense. Units must work with OGC to retain outside counsel.

I-9 Compliance

Federal law requires an I-9 for each person employed in the United States. 

Address Changes

Employees should review their "Current Local" address and edit if needed. To update the current address, go through Wolverine Access, and select Employee Self Service > Campus Personal Information > Addresses > Current Local.  

Update your address with TIAA and Fidelity Investments if you participate in any U-M retirement plans.   

Benefits

Provider networks are the primary consideration with respect to off-campus benefit enrollment. Employees should select a health plan that will provide them with the desired level of coverage and provider network flexibility in their area.

Call the SSC Contact Center at (734) 615-2000 or send an email to [email protected] with specific questions.

Income Tax Liability

Employees may need to consult with a tax advisor regarding their personal tax situation. See also: Travel and/or Moving Expenses.

If the employee is working in another state for 30 or more days in a calendar year, it is the employee's responsibility to submit State Tax Withholding forms to Payroll to have taxes withheld for the state in which they are performing services. It is also the employee's responsibility to confirm local income tax obligations and to make quarterly estimated tax payments to their locality for these situations.

Direct Deposit

In most instances, employees may update Direct Deposit information using Wolverine Access.

If the employee cannot update Direct Deposit Information online, the Direct Deposit Authorization Form should be faxed or mailed to the Payroll office.

Travel and/or Moving Expenses

Whenever employees request to but are not required to work from a non-university site, unless otherwise agreed the employee is responsible for all expenses related to remote work, including but not limited to commuting, travel and/or moving expense. Employees should expect any reimbursement provided to be subject to personal income tax.

Whenever employees are required to establish a temporary residence at a remote work location for extended periods of time, they may be eligible for remote location compensation and/or reimbursement for transportation costs incurred.

Unemployment

When the U-M payroll office withholds taxes for the state in which the employee is working, the employee should file for unemployment in that state. Otherwise, the employee should file for unemployment in the State of Michigan. Unemployment benefits vary by state. Benefits for individuals who were employed on auxiliary or agency funds are recharged directly to the appropriate operating unit.

Worker's Compensation and Liability

Consult Risk Management regarding coverage for potential losses or liability.

See the terms in the work agreement regarding provisions for a safe work environment and reporting requirements.

  • If there is a work-related injury, fill out an injury report form.

  • Risk Management will contact an insurance company in the state to manage the case.

  • Risk Management will determine if worker’s compensation regulations applied should be based on employment in Michigan or outside of Michigan.

University Standard Practice Guide Applicability

The Standard Practice Guide is a compendium of the university's general operating policies and procedures. The policies that are contained in the SPG are approved by university leadership and typically apply to the entire institution.

Home Office Tax Deduction

See IRS Publication 587 Business Use of Your Home.