Agreeing with an employee to work remotely is just the first step towards properly regulating this work model in a company. Another very important responsibility of the employer is to cover the costs of electricity and telecommunications services, as well as the costs of the installation, service and maintenance of provided materials and work tools. The employer can also cover the costs of other elements of the workstation’s equipment.

This is where a number of doubts arise about how to determine the correct amount of the flat-rate allowance to avoid accusations from control authorities that the benefit provided is an additional bonus or pay raise for the employee.

The amount of the flat-rate should correspond to the anticipated costs incurred by the employee. Of course, this is not about precisely calculated costs but approximate costs, with a slight „buffer” built into the flat-rate. Importantly, there must be a direct connection between these costs and the performance of remote work.

The issue is significant because the reclassification of the flat-rate as employee income means it will be subject to taxation and social security contributions, just like salary. A flat-rate calculator can help here, allowing for a quick and correct calculation of the flat-rate owed to the employee, considering the nature of remote work and any equipment that the employer decides to provide to the employee.