Earlier quoted context omitted.
> European countries are outliers due to EU regulations. Any EU "citizen" can work anywhere in the EU, so pragmatically speaking, why would you only want to hire Spanish people instead of opening the door to French, Italian or German candidates? It comes at literally zero cost to the company. The employer needs to pay social contributions in the employee's residence country. And more often than not, the employee cann…
It’s the same in the US to hire someone in a different state. Every state has their own tax scheme. Every new employee in a new state is a big set up cost and ongoing maintenance.
Then there's the potential for each employee's address to be considered a nexus, since each of their homes becomes a de-facto company presence. Potentially subject to local registration, licensing and taxation by local municipal authorities, in addition to just the state level requirements. If you have a presence in the state, and your employee's official work location is that location, then you only have to deal with that local registration once wherever the presence is located. But if you don't have a location the state, or you have employees who are officially designated as work from home (rather than unofficially working from home while being designated as assigned to an office), then this quickly scale into a giant mess of regulation to navigate[2].
[1] https://taxfoundation.org/local-income-taxes-city-and-county...
[2] https://smallbiztrends.com/2018/04/remote-employee-complianc...