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California employers must reimburse remote workers for all necessary expenses

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Re: California employers must reimburse remote workers for all necessary expenses

#131
post #16

My biggest expense being remote is that I need an extra room for my office. Besides that, that would probably be heating in winter and electricity, but these are small compared to the cost of an extra room.

Unless you have special equipment that requires the space you don't need an extra room, you want an extra room.

My partner who works from home has a NDA which means nobody is allowed to even be in the same room while she is working.

That room is more than wanted...

Re: California employers must reimburse remote workers for all necessary expenses

#132

Many young people or those cheering for employee/consumer rights do not seem to understand that this does more net harm than good. For small businesses and startups, this can amount to millions of dollars of additional expenses. Like any economically rational entity, your employer is going to respond by reducing headcount, not hiring in CA anymore, cutting costs in your annual raises, or some combination of the above…

Fully remote work has always benefited the employer more than the employee, at least financially. Before the pandemic closed my employer's local office space (we were all told just to work from home), part of the employer's budget for each employee included infrastructure costs (office space, furniture, internet access, maybe food, beverages, etc). My salary did not change when I became fully remote, so the company realized significant savings by telling one hundred to just work from home.

Now, if a company has always been fully remote, then, yes, this sort of thing is ultimately going to hurt the employee because the company needs to recuperate those unplanned costs.

Personally, as a fully remote employee, I don't how to feel about this. Sure, I'd love my employer to offset some of my utility costs, but I also don't want them to assume that means they can control their use (which is their right in the context of an office space).

Re: California employers must reimburse remote workers for all necessary expenses

#133

Earlier quoted context omitted.

There’s these things called home offices and many have converted a room to be one when working from home all the time.

Its not unheard of to carve out the home office already for tax purposes.

That's long been a pretty questionable deduction unless it really is a dedicated space for work purposes. (Also, relatively few people in the US itemize today after the 2018 tax changes.)

Re: California employers must reimburse remote workers for all necessary expenses

#134
post #72

Earlier quoted context omitted.

A desk in the bedroom works well enough. You don't "need" an extra room, I've never had an extra room and I've been working from home in all my jobs

You're missing the parent's point. Your setup works for you but what if you and your partner both need to work? Do you both work at your desks in your bedroom? How does that impact your partner's sleep? What if you need to work late but they need to get up early? What happens when they have a meeting when you have a meeting? What if their work involves being on the phone all day? I think you're looking at this from a…

> Your setup works for you but what if you and your partner both need to work?

But see, this isn't my problem. The money the company gives you might be a lower pay raise for me and others who don't care

> but that's not everyone's job and living situation.

That's 99.9% of the cases

Re: California employers must reimburse remote workers for all necessary expenses

#135
post #117

Many young people or those cheering for employee/consumer rights do not seem to understand that this does more net harm than good. For small businesses and startups, this can amount to millions of dollars of additional expenses. Like any economically rational entity, your employer is going to respond by reducing headcount, not hiring in CA anymore, cutting costs in your annual raises, or some combination of the above…

If you are using your own equipment and resources, how are you an employee and not a contractor? Businesses should compensate because the agreement is the business uses their capital and your labor to make money. But if they also use your capital in addition to your labor, then the employee needs ownership of the business because they are devoting their capital to the business.

Fails ABC test. They get to tell you what to do etc. Makes you an employee not a contractor. Already established.

Re: California employers must reimburse remote workers for all necessary expenses

#136
post #130
post #60

Earlier quoted context omitted.

Add frequent flier miles, "kickbacks" of a couple percent on credit card expenses that are reimbursed, clothing (such as suits) and commuting expenses that are not reimbursed, but uniforms (and related) that are deductible, etc. As you say it's a mishmash that doesn't have a real basis in some overarching principles.

> but uniforms (and related) that are deductible Not after 2017, I think?

Entirely possible. Presumably most people who wear uniforms don't itemize deductions today in any case. The broader point was that people get various random perks that don't get taxed and have various expenses that don't get reimbursed/deducted.

Re: California employers must reimburse remote workers for all necessary expenses

#137
I'm a professional, I buy my own tools whenever possible. Gigabit ethernet, big monitor, nice keyboard, desk, chair, rocket fast machine. I've been remote for 13y. It would be nice to get reimbursed, sure, but also I don't want to deal with the administrivia.

Re: California employers must reimburse remote workers for all necessary expenses

#138
post #60
post #48

Earlier quoted context omitted.

It becomes equivalent if the company buys the newspaper subscription for the company and you have access to it. This whole area is a gray mishmash of arguments (does buying pizza for the office count as an expense or a salary item? Depends on frequency, the tax courts, etc).

Add frequent flier miles, "kickbacks" of a couple percent on credit card expenses that are reimbursed, clothing (such as suits) and commuting expenses that are not reimbursed, but uniforms (and related) that are deductible, etc. As you say it's a mishmash that doesn't have a real basis in some overarching principles.

In the US un-reimbursed business expenses are no longer federally tax deductible unless you fit in some very specific niches. That changed under TCJA in 2017 (effective 2018 tax year) IIRC. [1]

[1] https://turbotax.intuit.com/tax-tips/jobs-and-career/employe...

Re: California employers must reimburse remote workers for all necessary expenses

#139
post #93

I like the idea, but not the implementation. I think it should be done as a tax credit for the employee or the company instead. Doing so creates positive incentives for companies to hire remote workers in California. Requiring the company to pay up by force of law disincentivizes companies from hiring remote workers in California. I also think that it would be more equitable since an employee’s home office setup belo…

Your heart is in a good place, but... No more tax complexity, PLEASE. Let's stop using the tax system for encouraging/discouraging behaviors.

I kind of like the idea of a simple tax system, but on the other hand it's one of the best levers that the government has for influencing behavior. As long as the tax incentives correctly line up with the behaviors we want to promote or discourage, I think it can be a really good thing.

That said, I think it should be more on the business than on individuals. Individual taxes should probably be handled nearly entirely automatically for most people, with nothing more than an approval step required.

Re: California employers must reimburse remote workers for all necessary expenses

#140

Many young people or those cheering for employee/consumer rights do not seem to understand that this does more net harm than good. For small businesses and startups, this can amount to millions of dollars of additional expenses. Like any economically rational entity, your employer is going to respond by reducing headcount, not hiring in CA anymore, cutting costs in your annual raises, or some combination of the above…

It's a small expense for employers, and can be a real difference in costs for the employee. I don't think you're correct. If I spend 100% more on heating everyday because I work from home so need to heat 24/7, that's nothing to an employer (100-200$/m) but could be a significant deduction from a family's budget. Meanwhile the employer would have otherwise heated up an office space and paid all bills there. I've been…

We’ll start being asked for utility bills during interviews and recruiters will screen for people with heat pumps. “Candidate must have updated insulation and new windows”
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