Allowing remote work arrangements has no impact on payroll and income taxes if all employees reside in the same state where the business is based. But, if employees live in a state other than the employer’s, taxes get more complicated.
Fremont, CA: Many firms were compelled to allow their employees to work from home due to the pandemic. Businesses are contemplating whether or not to keep remote work agreements now that the economy is improving. Here are four things to know about the remote workforce:
No Issues with OSHA
You won’t have to worry about OSHA inspections if you allow or mandate your staff to work from home. According to the Department of Labor, the Occupational Safety and Health Administration (OSHA) has no regulations addressing telework in home offices. In 2000, the agency issued a directive declaring that it would not check employees’ home offices, that it would not hold employers liable for employees’ home offices, and not expect businesses to visit their employees’ homes.
Many businesses wonder if staff who work from home are as productive as those who work in the company’s headquarters, offices, or other locations. According to two-year research by Great Place to Work, most employees who worked remotely stated they were at least as productive as those who worked in offices. It should be mentioned that employer support of their employees had an impact on productivity.
Problems with Cybersecurity
All firms must protect their data and systems from hacking, ransomware attacks, and other threats. There are potential cybersecurity dangers when people operate from home. Security standards at home offices may differ from those in corporate workplaces. Cybercriminals can use social media to get access to employees’ computers, potentially compromising company data.
Employers who continue to accept remote work arrangements should implement procedures to protect company data. This could involve giving staff gadgets that can only be used for company business, educating staff on security best practices, and assisting them in securing their networks.
Complex Tax Issues
Allowing remote work arrangements has no impact on payroll and income taxes if all employees reside in the same state where the business is based. But, if employees live in a state other than the employer’s, taxes get more complicated. ADP has a lengthy post outlining the problem’s complexities. The length of time an employee works in another state, whether the arrangement is required by the employer or merely selected by the employee, and other state and municipal rules influence whether an employer is needed to withhold state income tax in that state.