Tax implications of working from home

Seamlessly transform how your employees work

Demand for remote work has been rising for years. But the global pandemic turned it from request to requirement almost overnight—and companies stepped up. Seventy-nine percent of respondents to a Deloitte survey¹ reported that at least 75 percent of their workforce has been able to work remotely during the COVID-19 pandemic. And 69 percent said their company’s ability to manage and support a remote workforce was good or excellent.

Your company’s workers are likely to have questions about going back into the office postpandemic. It may be time to stop thinking about “remote work,” “work from home,” and “telecommuting” as special categories. These ways of working may continue to be part of the norm. You need the right policies and infrastructure in place today to support them to take advantage of the benefits they present.

Taking on the potential talent and tax implications of remote work

Deloitte can help your organization evaluate and establish temporary and future remote work programs. We can help analyze your current remote workforce approaches—including those implemented rapidly in response to COVID-19. We can also help your organization develop and execute a future-forward remote work strategy that aligns with business objectives: Employees may benefit from increasing their well-being, job satisfaction, and work-life balance, and the business benefits from lowering overhead costs and becoming more attractive to top talent. We do this through the three major components of our remote work approach:

The intersection of talent and technology

Human insights, combined with cutting-edge technologies, can help you achieve the potential benefits of incorporating remote work arrangements into your organization. The process starts by identifying where your people are today, including allowing workers to preclear their desired work arrangement. Our proprietary, custom-built technology uses key employee and employer information to analyze remote work requests from various risk and cost analysis perspectives, enabling you to make informed decisions and determine if they fit the remote work plan your organization has developed.

The Deloitte difference

The way work is being done is rapidly changing. Over Deloitte’s 175-year history, we’ve helped our clients navigate ground-shifting changes.

Mobility is a capability. We’re not new to the changing world of work. Deloitte’s Global Employer Services have long helped clients address the tax implications of remote work and navigate periods of disruption and uncertainty.

From “doing digital” to “being digital.” During our three-year Tax in 2020 initiative, we doubled our investment in digital transformation. We focused our efforts on technology innovation to develop leading edge digital capabilities and cloud-based solutions. We also prioritized an integrated global platform that automates many of the cumbersome aspects of tax compliance.

Putting all of Deloitte to work for you. Remote work is so much more than tax. Our tax and human capital specialists team together to deliver relevant research, analytics, and insights.

References

¹ Deloitte Tax LLP, “2020 Impact of Remote Workers on Your Employment Tax Practices,” October 2020.