close
close

Semainede4jours

Real-time news, timeless knowledge

Should Your Employer or the IRS Compensate You for WFH Internet?
bigrus

Should Your Employer or the IRS Compensate You for WFH Internet?

For millions of people working from home high speed internet The connection is as important as the computer itself. However, while the employer usually provides the computer and necessary applications, those who work from home are usually responsible for their own internet.

However, your employer may be required to reimburse you for some or all of your necessary expenses, including internet. Additionally you can: reduce your internet expenses Let tax season come. Take a look below at what it takes to qualify for compensation on your internet bill.

Employer reimbursement for home internet varies by state

No federal law requires companies to reimburse remote workers for home expenses such as internet service. The only exception is if those expenses reduce the employee’s average hourly wage below the federal minimum of $7.25. According to the Ministry of Labor.

State employment laws may require employers to cover at least part of the internet bill or other work-from-home expenses. Californiafor example, it states: Labor Law 2802 An employer “shall indemnify its employee for all necessary expenses or losses incurred by the employee as a direct result of the performance of the employee’s duties.”

For remote workers, home internet costs can definitely be considered a “necessary expense.” This may only be “necessary” when the employee has no choice but to work from home. If going to the office is an option but the employee prefers to work remotely, compensation for home office expenses, including internet, is not guaranteed.

A select few states — illinois, Montana, new hampshire, north dakota And south dakota, plus Washington, D.C. — have similar laws. Most of them are not like my hometown South Carolina. In such states, a generous company might be able to help cover internet costs or other work-from-home expenses voluntarily or upon request, but I wouldn’t count on it.

What should you expect if you qualify for home internet reimbursement?

We use the internet for much more than work. Since the employer is only on the hook for work-related expenses, they technically don’t have to cover time spent using this service. internet for streaming or other non-work activities. If I worked 180 hours during an internet billing cycle that included 720 hours, my employer would only have to cover a quarter of my bill, and this was only available in states where the law required it.

Likewise, since many non-work activities also contribute to my monthly data usage, an employer would not be required to reimburse me for data overage fees. Regardless of who pays the internet bill, it’s better to avoid overuse altogether. manage internet data usage or switch to one provider with unlimited data.

Even in states where the law requires it, calculating how much your employer owes you can be a bit complicated and, for some, more trouble than it’s worth. Some employers can simplify things by offering remote workers a monthly stipend. The designated amount can be spent on internet bills, home office equipment, or other expenses incurred as a result of working from home. If it covers your entire internet bill, great. If not, at least it’s something.

What if I’m in one state and my employer is in another?

In general, wage and compensation laws apply to the state in which the employee physically performs the work, not the state in which the company is located.

I live in South Carolina but work remotely for a centralized company washington stateAlthough Washington qualifies, the employer will still need to meet minimum wage requirements in South Carolina. highest state minimum wage. The same logic applies to the possible reimbursement of home internet.

What if I live in California but my employer is based in a state that does not cover work-from-home expenses? This is a little more difficult and may vary by state. Such situations may require consulting with HR or, in serious cases, with an attorney who specializes in employment law.

Are home internet costs tax deductible?

Another swing and I miss this place. The IRS makes it clear that employees (if you get a W-2, that means you) are not entitled to claim the home office deduction.

Tax Cuts and Jobs Act of 2017 deferment of tax write-offs for household deductions For employees until 2025, so the cut may return in the future.

As with any good tax law, some exceptions to home office deduction for employees. In addition to eligible K-12 educators, employees who incur disability-related employment expenses, armed forces reservists, qualified performing artists, and wage-based state or local government officials may also qualify for the deduction.

Better chances for the freelancer

freelancers working from home and Small business owners can benefit from home office discount. Conditions apply but the main qualification is According to the IRSThe residence is the principal place of business and “a portion of the house is used exclusively for the regular conduct of business.”

Those who qualify to do business and rely on the internet should include internet costs in their utility expenses when filling out. Form 8829. If the taxpayer uses the same internet service for both business and general home use, only the part used for business can be deducted from taxes.

Fortunately, there are other ways to save money

Internet service is a necessary expense when working from home, but in most states employers are not required to cover internet costs and no tax deductions are available. There are others too Practical ways to reduce your internet bill at home. Using your own Wi-Fi equipment, downgrading your plan, or switching to another provider These are just a few ways to save money on home internet.

For more ways to save money around your home, check out: CNET’s Home Tips section. For more information about possible tax deductions and taxes in general, be sure to visit: CNET’s Taxes hub page.