ASA Central Network

  • 1.  Remote work expense reimbursement

    Posted 09-10-2020 12:59
    Hello everyone,

    What is the average expense (wifi, utility) reimbursement for recruiters working from home?

    Thank you for your help!


    Nick Sefayan
    Global Service Resources Inc.
    Burbank CA
    (818) 244-4484
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  • 2.  RE: Remote work expense reimbursement

    Posted 09-11-2020 10:59

    Hi Nick,


    We have opted not to provide reimbursement for a handful of reasons:


    1. We are providing computers, technology, etc
    2. The recruiters will have internet at their home anyway- nothing else is being purchased by them
    3. Anyone working from home saves a ton of money in gas, depreciation, and wear on their vehicles
    4. Working from home is a massive perk that not all companies are offering now that most states are not requiring it.


    Just some thoughts that I have put into this specific subject.


    Erik Snyder, CSP
    Director of Operations

    (586) 323-0073 Direct

    (586) 944-7678 Cell


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  • 3.  RE: Remote work expense reimbursement

    Posted 09-11-2020 11:21
    Hi Nick,

    Many companies approach it in one of two ways.  Either remote reimbursement is not allowed (based on overall comp plan + bonus of working remotely) OR they add in a monthly stipend to cover/split remote expenses (wifi, cell, etc.).  On average, this typically is a range of $50 - $200/mo. (I have seen it go up to $500/mo.)  Most remote recruiters understand a company isn't going to absorb ALL of the remote work expenses due to general household usage.

    Keep in mind Federal law requires expense reimbursement when the total expenses push the employee's earnings below minimum wage.  The rest is up to the employer and in this case, employers may want to consider what message you want to send to their team if they choose not to allow reimbursement of any kind.  Taking a hard stance could have consequences from developing a disgruntled employee, building resentment, to loss of a good employee.  

    One last thing to consider and share with your employees... while the federal deduction for unreimbursed business expenses was eliminated in 2018 for individual employees, some states may still allow for deductions (I'm not a CPA so seek advice.)  I recently worked with a client who did not allow for any remote reimbursement.  It caused some friction among the team.  I helped them set up a "Tax Talk" video conference where they had their CPA speak to employees and offer professional guidance to ensure the employees were educated about maximizing their deductions.  The CPA agreed to host a monthly 30-45min "Tax Talk" call open to the entire organization as a follow-up and Q&A.  This was a huge success and well received by the team.  The upside for the CPA is he gained new clients for his firm as well.  Win-win!

    These are still stressful times, especially for employees.  Weigh the pros/cons and consider a middle ground.  Hope this helps!

    CJ Rodriguez, President
    Las Vegas, NV
    Tel. 702.596.5550

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