As more employers roll out hybrid work policies, there are many complex legal considerations to take into account. Hybrid work impacts tax compliance, reimbursement for work expenses and prohibitions against discrimination, among other things.
Workers and job applicants are pressing companies for hybrid schedules, and "addressing this tension raises a host of legal and practical considerations," said Devjani Mishra, a lawyer with Littler in New York City.
Hybrid work means an employee works some days at the worksite and some days at home. Sixty-three percent of employers offer hybrid work opportunities to most workers, according to the Society for Human Resource Management's 2022 Employee Benefits Survey.
For tax and legal compliance reasons, employees' work and home locations need to be up-to-date and consistent across all of your organization's systems, not just your payroll system. It's helpful if offer letters and employment contracts spell out the hybrid model and the expectations for coming into the worksite.
Ten states and Washington, D.C., require employers to reimburse remote workers for necessary business-related expenses, such as office supplies and a portion of monthly bills for Wi-Fi, cell phone service and utilities. Each state applies different standards in this situation.
Tax Considerations
State corporate tax rates and unemployment tax rates vary. Some states have additional corporate taxes for things like paid family leave.
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