How Remote Work Can Impact Your Business

The impact of the pandemic can still be seen globally across differing industries. One of the major aspects of living in a post COVID world is the increased prevalence of working from home. Remote work can be a valuable asset to a business but knowing some of the potential risks is key for ensuring your business’s remote work policy tackles the possible challenges.

Some aspects to consider when drafting a remote work policy that works for your business:

1. Compliance with Labor Laws

Make sure you are complying with local minimum wage, overtime pay, and record-keeping requirements, as these become more complicated with remote workers. Additionally, work on finding a streamlined and efficient process for time tracking. Ensuring a robust process is in place can help bypass potential disputes over unpaid overtime or off-the-clock work.

2. Data Security and Privacy Risks

Ensuring confidentiality and protecting sensitive company and client information is imperative when employees are working remotely. Remote work increases the risk of cyber-attacks, and implementing thorough cybersecurity policies will be necessary. Consider providing employees with antivirus software that automatically updates so it can fight threats like ransomware, malware, and phishing attempts before they become a larger problem that comprises your business and the client’s data.

3. Employment Contracts and Policies

To prevent misunderstandings and conflicts, it is important to have clear policies that define duties, expectations, and processes for working remotely. To handle the nuances of remote work, like work hours, pay, and expense reimbursement, employment contracts may need to be amended.

4. Tax Implications

Businesses may face some tax nexus issues when it comes to taxes if they are employing workers who work remotely from different states. Additionally, Remote employees may have tax obligations in multiple states or countries, complicating tax reporting and compliance. These implications can impact not only a business’ tax compliance but also financial statement reporting, registrations, data collection, and documentation. Ensure you are conducting thorough research on the Economic Nexus, and consider the costs and benefits of your remote work policies.

If you have any questions about how remote work can impact your business and how a comprehensive remote work policy can be utilized in your business, please contact the business law attorneys at McNeelyLaw LLP by calling (317) 825-5110.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.