Remote Work Expenses: How to Handle Them Legally and Transparently

Remote work has become a standard practice in many organizations, offering flexibility for employees and efficiency for businesses. However, it also raises an important accounting challenge:

How should companies correctly and legally reflect employees’ remote work-related expenses?

What Qualifies as Remote Work Expenses?

Remote work expenses are costs that employees incur while performing their duties outside the office. Typical examples include:

• Internet services
• Electricity usage
• Office furniture such as chairs or desks
• Additional technical equipment such as monitors, keyboards, or webcams

These expenses, though often modest individually, can accumulate significantly over time. Therefore, businesses must establish clear procedures for handling them.

How to Reflect Remote Work Expenses in Accounting

To ensure compliance, accuracy, and fairness, companies should consider the following steps:

1. Written Agreement or Internal Order

The arrangement should be documented, clearly stating that personal resources are used for work purposes. This protects both the company and the employee in case of disputes.

2. Submission of Receipts or Invoices

Whenever possible, expenses should be invoiced directly to the company. If that is not feasible, organizations should define transparent reimbursement procedures.

3. Consideration of Tax Implications

Not every expense automatically qualifies as a business-related cost. If the classification is unclear, the State Revenue Service (VID) may treat such expenses as employee benefits, which would make them subject to taxation. Proper categorization is essential to avoid compliance risks.

4. Clear Limits and Frequency

Companies should establish guidelines outlining:

• Which expenses are eligible for reimbursement
• The frequency with which they can be claimed
• The maximum reimbursement amounts

Why It Matters

Proper handling of remote work expenses goes beyond compliance. It ensures clarity, transparency, and fairness for both employers and employees. A well-structured approach helps prevent misunderstandings, supports accurate financial reporting, and strengthens trust between all parties involved.

Need Expert Guidance?

Every company’s situation is unique, and tailored solutions are often required. To ensure that your organization manages remote work expenses effectively and in full compliance, our experts are available to provide professional advice.