It's great to see you back in the Community. Allow me to provide you with some information to help answer your question about paying an employee that works in two states.
When you have employees that live in one state and work in another, they may be subject to income tax in both states. There are states that have reciprocity agreements that would require an employer to only pay income tax to one of the two states.
To help determine what income taxes you may be subject to, I recommend consulting your state agency. Since dealing with multistate employment situation is complex.