When working remotely outside of your home for any period of time there are 3 very important things you need to be careful with.
We hear more and more about people working in exotic locations or someplace away from their main home because when working remotely you often have the flexibility to do so. As long as you have a laptop and an internet connection, does it really matter where you are physically? Yes it does!
There are things you need to be aware of before you go ahead and do that.
Importantly, we suggest you make sure your employer knows you are working someplace outside of your home because there could be legal or policy implications that have to be taken into consideration.
(NOTE This is not tax or legal advice. Please check with the relevant authorities for what applies to you.)
- STATE TAXES If you are choosing to live or work at a mountain home or a house down the shore or some other place out of state, maybe because the views are incredible or it’s a peaceful and quiet location, be aware that there could be tax implications. For example, if you are working at a home in the countryside outside of your home state, and you are working there for a certain minimum number of days, that could mean you are required to pay taxes in that state. And if you’re not paying taxes in that state after passing that minimum threshold, you could be liable for fines or penalties for failure to pay required taxes.
- PAY DIFFERENTIAL Some companies offer a pay differential or higher compensation if you are living in an area with a particularly high cost of living, such as Los Angeles, Chicago, or New York. However, if you are now living or working in a different location simply because you are able to do so, you may find you no longer qualify for that pay differential you have been enjoying. This could result in a clawback, or paying your employer back those additional wages, because you are no longer living and working in that expensive area. Check with HR and your state for those regulations.
- DATA RESIDENCY AND ACCESS Many people don’t think about this one. If you count yourself among those who are living and working out of the country – some people are choosing to live in Costa Rica, Mexico, or Europe, for example, because they are beautiful areas – you must be very careful with data residency requirements. Data residency refers to regulations that pertain to accessing company or customer data outside the borders of the US, or if you are in another country and accessing data from within the borders of that country. There could be regulations that restrict access to that data, and you could be in violation if you are not aware of the regulations that apply. GDPR is one example, but there are many others. This is especially a concern if you are working for a company that deals with state and local governments, federal government agencies, or the military. Even if your specific customers are not necessarily in those categories but your company works for those types of customers you could still be subject to those regulations. Again, check with HR and the relevant laws to make sure you are not in violation.
Bottom line, if you are going to be living and working somewhere outside of your home state or country, even if only temporarily or periodically, don’t do it in isolation. Make sure HR knows about it, make sure your manager is aware, and make sure you know what the relevant laws are that apply to your situation. You would not want to find yourself liable for fines or penalties or potentially breaking laws.
@deskwerkz Top 3 Warnings when working remotely #workfromhome #workfromhomelife @deskwerkz #remotework #homeoffice #homeofficeroutine ♬ original sound deskwerkz