Who pays for remote work expenses?

Not so long ago, people who worked from home were considered privileged.

Nowadays, nearly 35% of the population works remotely — and a lot of it has to do with the effects of the global pandemic.

Still, most remote employees often wonder — Who pays for my expenses?

• Who pays for the internet?
• Who pays for the laptop/desktop computer?
• Who equips the home office?
• Who pays for a co-working space?
• Do remote employees take pay cuts if work expenses are partially covered?

All of this and more will be answered down below!

Do remote workers get paid less?

According to the latest research, done on Oct 4, 2022, the annual average earnings for remote workers rest at $62K — which is more than the average yearly income of a US employee, which is around $54,132 per year.

Interestingly, only a few years earlier, in 2018, remote workers averaged around $48K, or $14K less than today — which shows that remote work might be the future of work.

So, in other words, no — remote workers do not get paid less than their in-office counterparts.

Salaries and savings of a remote employee

The numbers vary from employee to employee, but the factors remain the same — the amount you’ll earn working remote largely depends on:

• The company you work at,
• The nature of your work, and
• Your location.

The benefits of working remotely are further revealed when you put down the numbers and see the amount you save by not coming into the office every day.

In fact, most US employees spend around $7,000 per year on commutes, professional clothing, and eating out during work. Remote workers tend not to have such expenses.

Who pays for what? — remote work expenses

While employers often cover all work-related expenses, there are exceptions. 

In the following lines, we’ll go over the most common work expenses and see who pays for:

• Work equipment,
• Internet connection,
• Software,
• Additional equipment, and
• Home office expenses.

Who pays for work equipment?

In most cases, companies will provide you with a business laptop or a computer that you’ll use on a daily basis for all work-related activities.

However, don’t expect this to be a given — some employers that operate small businesses don’t have the budget to offer company computers.

Who pays for the internet services?

In the US, there are no laws that dictate whether an employer should be obligated to pay the internet expenses of their employees.

In fact, many surveys say that 79% of remote workers pay their own internet bills.

In any case, it’s in your best interest to check with the employer regarding their internet reimbursement policy.

Who pays for software?

As a means of protecting their data and ensuring flawless operations, many employers buy legitimate software or use their own products. 

Some of the tools you could encounter at your remote job are:

• Design tools — e.g. Adobe Creative Cloud package,
• Team communication tools — e.g. Pumble or Slack,
• Time tracking tools — Clockify, and
• Project management tools — e.g. Plaky, Jira, or Trello.

Who pays for any additional equipment?

Some roles require more than just computers or laptops. 

For example, if you’re a sales specialist, your company will probably supply you with additional cell phones for work.

In some cases, if the role requires it, you’ll also be given:

• Printers,
• Scanners, and even
• Multiple monitors.

Who pays for your other home office expenses?

In line with some modern practices, employers often provide their employees with:

• Ergonomic chairs,
• Monitor stands, and 
• Everyday office supplies.

In fact, the Occupational Safety and Health Act — OSHA — mandates that all workstations are to be void of all hazards. Due to this clause, many employers in the US offer chairs and tables to their remote workers.

However, the clause is not definitive, which is why you should always check with your employer about what you’ll be provided with.

Some companies offer home office stipends that reimburse you for the expenses you’ve made to equip your remote home office. 

The costs of your furniture and supplies are usually averaged — based on the market prices — based on which you’ll receive reimbursements.

When it comes to taxes, as of 2018, no home office tax deductions are applicable for remote workers — only for self-employed individuals.

Who pays for additional remote work expenses?

The most common additional work expenses are usually:

• Travel expenses, and
• Employee time off.

Even remote workers have to come to the office every once in a while — usually for one of the following reasons:

• To sign contracts and extensions,
• To attend in-person meetings,
• To hold presentations, and even
• To attend office parties.

In such cases, companies often cover the travel expenses. 

In the same manner, time off and sick days are usually paid. But, remote workers tend to take fewer sick days, as it’s much easier to work from home while suffering a cold — especially since it means there’s no commuting to work.

What are remote reimbursements laws and how do they help you?

In the US, federal laws and 11 state laws protect employees from sinking their income below the minimum wage with work-related expenses.

Therefore, the work-from-home expenses are reimbursed in 99% of the cases, and they usually include:

• Internet and carrier bills,
• Equipment,
• Office supplies, and
• Travel costs.

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