Remote work after one year of legislation in force

 

Under the legislation, employers are required to provide remote workers with the necessary work materials and tools. Additionally, they are required to ensure installation, servicing and maintenance of the work tools or to cover the costs of their use. It is also the employer's obligation to cover the costs of electricity and telecommunication services necessary for remote work. 

 

According to the legislation, the employer may instead offer the employee a lump sum payment corresponding to the expected costs incurred by the employee in connection with remote work.

 

 

In practice, the legislation does not provide guidance on how to calculate the lump sum for remote work so that it complies with the regulations. Although the lump sum for remote work does not constitute income within the meaning of the PIT Act and is therefore exempt from tax and social insurance contributions, a disproportionately high lump sum in relation to the costs actually incurred may be challenged by revenue authorities. 

 

On the other hand, a lump sum that is too low may be questioned by the employees themselves and expose the work establishment to an inspection by the National Labour Inspectorate for failing to comply with the obligation to bear the costs of remote work. 

 

Therefore, it is worth reviewing the lump sums paid to employees at least once a year and adjusting them, if necessary. 

 

If you are unsure how to correctly calculate the amount of reimbursements paid to employees or need assistance in adjusting your amounts – contact​ Rödl & Partner experts. 

 

We will be happy to answer your questions about paying certain benefits to employees and identifying the related tax obligations.