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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

#21
post #6

Sounds like a low key way to force employees back into the office.

How so?

If it works out as say £150/seat/month to be in the office vs say £600/year for a reliable broadband connection, contributions toward power/heat, and providing a chair/desk/monitor setup, many won't consider the 2/3 cost saving worthwhile.

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

#22
post #12

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…

The company requiring the worker to do the work should foot the bill, not the taxpayer.

The consequence is that the company will want to improve efficiency by paying for all the utilities for all employees in a single building. E.g. less WFH.

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

#23
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're going to pay for an extra room--which seems very unlikely (or should be) to be reimbursable as opposed to working on the kitchen table--the actual incremental costs seem pretty trivial. Even if you reimburse some pro-rated amount of internet and/or mobile, that's maybe $100/month in the US.

ADDED: If you don't have an option to go into an office, a stipend for a co-working space may be reasonable.

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

#24

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…

This does not work differently in other states as far as I’m aware, California just might be more willing to enforce the laws already in place. Additionally, this not a tax credit which is money owed to you by the tax authority, rather a deduction which is a very standard vehicle in calculating net income (revenue minus costs). Who takes deduction doesn’t matter as far as the IRS is concerned, for example, as long as it’s not claimed twice. As an employee, I would rather be reimbursed for company expenses than have to manage those deductions throughout the year because part of the benefit of being W-2 is that you don’t have to worry about anything except collecting that paycheck. If I we’re on a contract, I would be managing my own expenses.

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

#26
post #6

Earlier quoted context omitted.

How so?

> If you work from home in California, your employer might be required to contribute to your internet bill, electricity bill, and other expenses necessary to do your job. If a company already has an office near you they may just say you need to come into the office, they will not pay for your internet and electric bill. If you drive into the office they don't have to pay for your car, insurance, registration, gas, et…

Company can't afford $75 a month? Thats cheaper than the parking at my office which is $500/m per car.

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

#27
post #6

Earlier quoted context omitted.

How so?

Many employers currently have a "work from the office 3/4/5 days a week" policy, but don't really enforce it. This will force them to enforce it, with the threat of having to pay a big bill if any employee claims to be working from home.

The article clarifies that scenario:

"However, if your organization has returned to in-person work, but you choose to work from home, it's less likely that your business expenses will be seen as "necessary"—as you could have avoided them by working from the office or other worksite."

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

#28

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…

Right, this will also disincentivize companies going folly remote, since this is eating into their savings for not having an office. Companies only have to pay this expense if there is no option other than remote.

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

#29
post #8
post #5

This is California. We can't have any affordable living options.

How is this related to that?

RTO requires living near an absurdly unsustainably expensive tech hub and/or intolerably long commutes (ie working hours).

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

#30

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…

> Requiring the company to pay up by force of law disincentivizes companies from hiring remote workers in California.

This was my thought as well. By increasing the burden, companies will just stop remote positions, something they are inclined to do already.

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