You work for a family-owned business located in Coos Bay, Oregon, which manufactures prefabricated metal structures. The owner’s granddaughter has just started college at McGill University in Quebec, and he has promised to pay half of her costs, provided she majors in engineering and works for the business after she graduates. Over lunch, he asks you to find out whether he should pay his half from his personal accounts or put her on the payroll. What state and local tax issues should be considered in making this decision?