No State Income Tax? Payroll Just Got Simpler
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming don't tax wages at the state level. That leaves federal filings and state unemployment reporting, and we've handled both, remotely, for businesses since 1969.
Most states run a second, parallel payroll system: state withholding tables, a state W-4 equivalent, and a state withholding return on top of the federal one. Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming skip that layer entirely.
What's left is federal payroll (FICA withholding, federal income tax, quarterly Form 941, annual Form 940) plus your state unemployment insurance filing. That's the whole list for most employers in these states. We run both, every pay period, so you never have to think about a filing calendar again.
Pacific Data Services is based in Honolulu, and we've run remote payroll for mainland clients for years. Distance has never been the hard part of payroll. Getting the filings right, on time, every time, is.
Full Coverage
Everything required to run compliant payroll in a no-income-tax state, handled for one flat monthly rate.
Exact pricing depends on employee count and pay frequency. Request a quote for your number.
Simple Process
No office visit, no in-person meeting. Most new clients are running payroll within a week.
We talk through your headcount, pay schedule, and current setup, by phone or email, wherever you are.
You send employee information and prior payroll records through a secure link. Nothing to mail or fax.
We configure direct deposit and your state unemployment insurance account so filings start clean from day one.
Each pay period you send hours by phone or email. Calculations, deposits, and filings are on us from there.
No state income tax doesn't mean zero state-level payroll obligations everywhere. Washington employers handle Paid Family and Medical Leave premiums and WA Cares Fund long-term care deductions on top of standard payroll. Nevada employers pay the Modified Business Tax, a quarterly tax on total gross wages above a threshold.
Both are built into standard service for clients in those states. You won't need a separate vendor, a separate login, or a separate invoice to stay compliant.
Why It Matters
We've been running payroll since 1969. Distance from Honolulu has never changed how we treat a client's account.
The same person handles your account every pay period. Call or email and you reach someone who already knows your file.
Month-to-month pricing, no setup fee, no exit penalty. We keep clients because the work is right, not because they're locked in.
Founded in Honolulu in 1969, still family run. We've processed payroll through every filing change the IRS and the states have made.
Small businesses aren't an afterthought for us. If you have one employee or fifty, you get the same attention to detail.
Common Questions
Yes, and it's simpler. Without a state income tax, there is no state withholding table to manage and no state withholding return to file. Payroll comes down to federal tax withholding (FICA, federal income tax, FUTA) plus your state unemployment insurance filing. Pacific Data Services handles both for a flat monthly rate.
Usually just state unemployment insurance and new-hire reporting. Two states add extra programs: Washington requires Paid Family and Medical Leave and WA Cares Fund payroll deductions, and Nevada has the Modified Business Tax on quarterly gross wages. Pacific Data Services handles both of these as part of your standard payroll service, no separate setup required.
Everything happens by phone, email, and secure document upload. We start with a short consultation call, collect your employee and pay schedule information, set up direct deposit, and you are running payroll within about a week. No office visit or in-person meeting is required.
Payroll calculations every pay period, direct deposit, federal tax deposits, quarterly Form 941 filings, annual Form 940, state unemployment insurance filings, new-hire reporting, and W-2s and 1099s at year end. Pricing is based on employee count and pay frequency with no setup fee and no long-term contract. Email helpdesk@pdspayroll.com or call (808) 521-1813 for a quote.
Email your state, employee count, and pay frequency. We'll reply with a flat monthly number, no sales call required.
Email helpdesk@pdspayroll.comOr call (808) 521-1813