Agreeing on the performance of remote work with the employee is only the first step to properly regulate this work model in the company. Another extremely important obligation of the employer is to cover the cost of electricity and telecommunications services, as well as the cost of installation, servicing, and maintenance of provided materials and work tools. The employer may also cover the cost of other workplace equipment.

And here a number of doubts arise as to how to determine the lump sum in order to avoid accusations from inspection authorities that the provided benefit is an additional bonus or raise for the employee.

The amount of the lump sum should correspond to the expected costs incurred by the employee. Of course, this is not about strict calculation of the costs, but approximate costs. A slight “upside” is built into the essence of the lump sum. Importantly, there must be a direct link between these costs and the remote work performed.

The problem is serious because the reclassification of the lump sum as employee income means that it will be subject to tax and social security contributions, just like a salary. A lump sum calculator makes it possible to quickly and correctly calculate the lump sum due to the employee, taking into account the amount of work in the remote form and any equipment that the employer chooses to provide to the employee.

Find more in the PRO HR March 2023