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<<My guess is that the NY company needs to get themselves set up to pay their employee in VA. I'm also guessing that we're not talking about a Fortune 500 company here. ;-)>>

Good guess. NY company small. VA company large.

<<Your wife might not be covered for unemployment or worker's comp benefits if the company hasn't taken care of things correctly. You might not care now, but if something bad happens, you'll start caring pretty quickly.>>

Great point. I need to look into this. You'll probably see it on another board somewhere. Trying to get the most out of my membership. :)
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