The research arm of a major bank is calling for a 5 % tax on employees who choose to work from home. [16]
Deutsche Bank estimates the proportion of Americans who worked from home ( WFH ) during the pandemic surged to 56 %. [10]
Economists from Deutsche Bank have suggested a tax of 5 percent of a worker’s salary is introduced if they choose to work from home. [4]
The report by Deutsche Bank ( offices pictured in Frankfurt ) suggests that a 5 percent tax is placed on those who continue to work from home. [4]
Earlier this month, Deutsche Bank returned its non – essential staff at its London offices ( pictured ) to home working. [4]
Research strategists at Deutsche Bank said employees who choose to work from home should “pay a tax for the privilege” in a report on the remote – working industry since the coronavirus outbreak. [16]
Saving Money
Marketing executive Babu Vishwanath is happy that he has been able to save money in work – from – home ( WFH ) mode. [0]
April : Employees forced to work from home due to measures to control the coronavirus pandemic are covered by home – working expenses rules, HMRC has confirmed. [1]
It argues this is only fair, as those who work from home are saving money and not paying into the system like those who go out to work. [7]
Instead, he wants a federal tax designed to strip away the financial benefit of remote work, confiscating employees ‘savings by staying at home. [9]
The report argues that people working from home are saving money and not paying into the system like those who are leaving their homes to work, an imbalance that it says has been made clear during the coronavirus pandemic. [4]
Pandemic Time Spending
The number of people working in the office is unlikely to ever return to pre – pandemic levels, with many large employers saying they will allow some staff to permanently work from home – either full – time or part – time – after the pandemic. [4]
As the practice has become normal during the pandemic, more employers appear open to allowing remote work even after the pandemic passes. [10]
If you’re one of the millions of Americans working from home during the pandemic, you may be wondering if it’s something you could keep doing even after your office re – opens in post – pandemic times. [5]
The bank noted that the global pandemic has turbocharged the shift to remote work, a trend that looks set to last for the long term with many workers expecting to spend at least a few days of their work week at home even after the pandemic ends. [13]
Weekly Salaries
Further, this will not affect the employee’s salary basis of payment so long as the employee still receives in payment an amount equal to the employee’s guaranteed salary. [2]
Exempt, salaried employees generally must receive their full salary in any week in which they perform any work, subject to certain very limited exceptions. [2]
Salaried exempt employees generally must receive their full salary in any week in which they perform any work, subject to certain very limited exceptions. [2]
However, an employee will not be considered paid “on a salary basis” if deductions from the predetermined compensation are made for absences occasioned by the office closure during a week in which the employee performs any work. [2]
Therefore, a private employer may direct exempt staff to take vacation or debit their leave bank account in the case of an office closure, whether for a full or partial day, provided the employees receive in payment an amount equal to their guaranteed salary. [2]
The 42 states that administer an earned income tax generally have well – known thresholds as to how long a nonresident can work in the state before their employer is required to withhold state income taxes. [11]
State law generally requires employers to withhold state income tax based primarily on where an employee performs services, and secondarily where the employee resides. [11]
State income tax withholding for cross – border commuters has become a significant issue recently because of the national COVID-19 pandemic. [11]
In addition, the employer of such employee is not obligated to withhold Massachusetts income tax to the extent the employer remains required to withhold income tax with respect to the employee in such other state. [11]
There are many exceptions, generally involving state reciprocity agreements, in which residents of nearby states are permitted to work in a state without incurring income tax liability. [11]
In the event an organization bars employees from working from their current place of business and requires them to work at home, will employers have to pay those employees who are unable to work from home? [2]
Employers that have no presence in Massachusetts but do have employees temporarily working from home there should document the need for the temporary arrangement. [8]
As employers and employees have become comfortable with the telecommuting arrangement, some have determined that the telecommuting arrangement could continue indefinitely. [11]
New Jersey provided guidance stating that if employees are working from home solely as a result of COVID-19-related work – from – home orders, wage income will continue to be sourced as determined by the employer in accordance with the employer’s jurisdiction. [11]
Nor may employers pay below the minimum wage for any work performed by a non – exempt ( hourly ) employee. [6]
Reporting Time Pay – Generally, if an employee reports for their regularly scheduled shift but is required to work fewer hours or is sent home, the employee must be compensated for at least two hours, or no more than four hours, of reporting time pay. [6]
How many hours is an employer obligated to pay an hourly – paid employee who works a partial week because the employer’s business closed? [2]
It does not require employers who are unable to provide work to non – exempt employees to pay them for hours the employees would have otherwise worked. [2]
Employees can receive up to 80 hours of paid sick leave at 2/3 of their regular pay or, if higher, the applicable minimum wage, up to $ 200 per day and $ 2,000 in total. [15]
