While filling out their paperwork, the new hire has the option to specify the primary state where they are living in the event that their primary residence is in a different state from their working state.
The "State (Working)" field is populated based on the company's location.
"Primary State (Living)" defaults to the company's location, but new hires who have a living location that differs from the "State (Working)" location select the state in which they live. The state selected by the new hire determines which state withholding form the new hire will complete. The new hire will need to confirm that the state they selected will determine the state W-4 they will need to fill out.