Due to the COVID-19 pandemic, employers across all industries had to rapidly transform the typical work setting to protect employees’ health. This included requiring many workers to start working from home. Even now, many businesses have allowed employees to continue working remotely.
Since employees are working from home, should employers consider covering home office expenses for their remote workers? Should you pay to set up workers’ home offices with the appropriate equipment, technology, and supplies? Here’s what to consider as you earmark funds for your remote workforce.
What Home Office Expenses Should You Consider Covering?
According to Remote.co, a company that assists businesses with remote workforces, covering the cost of internet or phone service for employees working from home isn’t entirely unusual. They say employers might even foot the bill for these additional home office items:
- Hardware: Computer, keyboard, mouse, printer/copier, phone, second monitor.
- Software: Operating system, applications, antivirus protection.
- Furnishings: Desk, supportive chair, lighting.
- Supplies: Paper products, writing utensils, calculator.
When deciding what to cover, a good rule of thumb is understanding what each role requires to stay connected and productive.
Employees in client-facing roles might need premium Zoom accounts to conduct meetings as usual. They might also need work phones or tablets if they’re routinely traveling to client sites. All employees will likely benefit from laptops. If you provide laptops, invest in cutting-edge machines loaded with compatible operating systems to reduce tech errors.
Also, consider what the working relationship is. You can write off the costs of home office needs you cover for full-time workers on your taxes. On the other hand, contract workers and freelancers will need to write off the home office expenses they pay for.
How Are Companies Helping Pay for Home Office and Co-Working Costs?
According to Forbes, Google reimbursed its employees up to $1,000 to cover home office supplies needed during the pandemic. Other companies, such as Shopify and Indeed, are offering generous stipends to cover the cost of setting up an ergonomic home office. Software company Buffer had a home office expense policy long before the pandemic, which paid for remote workers’ internet service plus a “$200 annual stipend for technology costs and a one-time payment of $500 to set up their home office,” reports CNBC.
While no federal laws require you to reimburse workers for their remote home office, the California Telecommuting Act requires employers in that state to repay remote workers for all work-related expenses, including their home offices and phone and internet service.
Understanding your employees’ needs and your budget requirements makes it possible to provide generous yet thrifty office reimbursements or monthly stipends for remote workers.
Cosmo Insurance Agency is a full-service independent insurance agency based in Hackensack (Bergen County) and Lakewood (Ocean County), New Jersey that offers an all-encompassing range of insurance options for both individuals and businesses. Cosmo keeps its promise to assure an efficient and creative approach to the services we offer. Each of our clients experience a personalized and long-term relationship with us. Our New Jersey based team of health brokers guides our clients in helping them choose the most cost-effective options. By incorporating our knowledge of the insurance guidelines for healthcare, employee benefits, life insurance, self-insurance, dental, disability, and long term care insurance, we keep our clients up-to-date with affordable plans that cover all their specific insurance needs.
