As business environments shift in response to COVID-19,
companies are managing employees remotely. Working from home (WFH)
has become the "new normal" for a lot of organizations,
as we all do our part to keep our communities healthy.
Crowe MacKay's tax team suspects the next question that is
on everyone's mind is - what are the tax implications of
working from home? How does having your employees work from home
impact you as an employer as well as them from a tax standpoint?
Here's how you can begin to navigate this as it relates to your
2020 taxes.
Can Employees Claim Home Office Expenses Against Their
Taxes?
As the rules stand currently, to be entitled to deduct
home-office expenses, an employee must be "required by the
contract of employment" to maintain such an office. The space
must also be either:
