Work from Home Benefits and Compliance: Is Remote the New Normal?

PwC recently announced it’s allowing its 40,000 client-facing employees to work remotely from anywhere in the US. Joining companies like Facebook and Allstate, more and more employers are shifting to permanently remote models to attract and retain top talent. But what are the tax and legal implications of additional jurisdictions, employee schedule flexibility, and changes to company infrastructure?

91% of job-seeking Americans now expect flexibility to work from home. But what are the long-term impacts of a large-scale remote workforce for both employees and employers?

On today’s episode of the Taxgirl podcast, Kelly is joined by Nishant Mittal to chat about what the widespread work-from-anywhere shift will really mean for employers and employees. Nishant is the SVP and GM of Topia’s Business Travel solution, responsible for strategy and growth. Nishant joined Topia as part of its acquisition of Monaeo, a tech company he co-founded and led. He is a published author with publications in machine learning and image processing, and in leading peer-reviewed journals. He has a BS in Computer Engineering, an MS in Biomedical Engineering, and an MBA from Stanford’s Graduate School of Business.

Listen to Kelly and Nishant talk about the pros and cons of remote work:

• Many companies and tax professionals are talking about this buzzy idea of remote work, and how it fits into a long-term workforce model. What details and models are businesses considering now?
• Is it fair for companies to be promising permanent remote work benefits, or is it a model that could be dialed back in the future? Nishant discusses the current flux in labor and employee movement, and how offering remote work has become a strategic issue.
• What kinds of concerns do employers have about shifting to a more remote workforce?
• From remote work to hybrid work to flexible scheduling, what are the pros and cons of each of the different models companies are considering? There are many gray areas, Nishant explains, especially when it comes to all different models of “hybrid work.”
• How does jurisdiction play into remote work, and where does tax law come into play? What are the tax reasons that employers may not want to offer fully remote work, meaning allowing their employees to work from anywhere in the world? 
• The employee perspective: It is not clear that employees understand the impact of working from a different jurisdiction, particularly from a tax perspective. 
• The employer perspective: In a post-Wayfair world, doing business across state lines without a brick-and-mortar home base is the new normal. Employees don’t always consider how working from another state (or country) may affect their employer’s tax liability. 
• The home office deduction is currently claimable only by small business owners and independent contractors, not W-2 employees. If this doesn’t change, how might that impact the remote work demand? After payroll, real estate is usually the second-highest cost for employers. Nishant suggests employers may adjust compensation for remote employees to offset home offices, since they likely won’t pay as much overhead for company office space.
• Many companies, particularly startups and tech companies, became infamous pre-pandemic for having flashy perks and company culture benefits in their office space. Where does Nishant see those accommodations evolving, and how might company culture change with a primarily remote workforce?
• To comply with labor laws, will companies have to restrict jurisdiction changes, or even implement employee-tracking systems? Nishant shares some fascinating stats from HR professionals and employees on self-reporting and tracking employees’ work footprint.
• Regarding compliance, how can small and midsize companies plan for these kinds of changes? Nishant shares his plan of attack for strategic, proactive planning when it comes to offering hybrid and remote work benefits to employees. 
• Many companies say their people are their most valuable asset. How can they protect and provide for their staff (especially when so many are eager for remote opportunities) while maintaining compliance across various jurisdictions?

More about Kelly:

Kelly is the creator and host of the Taxgirl podcast series. Kelly is a practicing tax attorney with considerable experience and knowledge. She works with taxpayers like you every day. One of the things she does is help folks out of tax jams and, hopefully, keep others from getting into them.

You can find out more about Kelly here, and you can follow her on Twitter, Facebook, Instagram, and LinkedIn.

To subscribe to the podcast (it’s free!) using Apple, Spotify, or your favorite listening app, click here.

Links:

Kelly’s Website – Taxgirl
Nishant’s Twitter — @nysh28
Nishant’s LinkedIn — Nishant Mittal
Additional Resources — Topia