![]() ![]() ![]() In Belgium, for instance, employers may provide each employee with up to around €130 tax-free each month to cover expenses related to remote work. Each country and region may have different tax laws governing non-salary compensation, like work-from-home stipends. How a company implements work-from-home allowances will dictate whether the company and its employees must pay taxes on that money.Ĭompanies hiring internationally must consider local laws and tax regulations before offering work-from-home stipends to remote workers abroad. Employees who receive these stipends must report the amount to the Internal Revenue Service (IRS) and pay taxes on that income.īy contrast, if employees purchase equipment to work from home and receive reimbursement for those expenses from their employers, that income is typically not taxable. In the U.S., work-from-home stipends are generally considered taxable income because they’re monetary compensation. Is a work-from-home stipend taxable?Ī common question from employees and employers alike is whether work-from-home stipends are taxable. Looking for specific details on how to hire around the world? Check out our hiring guides. Some countries offer flexibility when covering expenses, while others focus on the increase in utility usage or equipment purchases and maintenance. Similarly, every country has its own legislation and guidelines for offering work-from-home stipends and reimbursements. These expenses include phone bills and internet access. California and Illinois, for example, both require employers to reimburse employees for their necessary remote work expenses. However, each state has different laws governing employment and the responsibilities employers have to their employees. law does not currently require companies to offer work-from-home stipends. For companies with remote or hybrid structures, offering work-from-home stipends is a great way to stand out and appeal to more employees. Companies can either provide the stipend as a single lump sum or a repeat payment on a chosen schedule (e.g., monthly or yearly). A work-from-home stipend, also known as a remote work allowance, is an amount of money employers pay beyond an employee’s base salary to cover expenses related to remote work. ![]()
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