United States – KPMG Report on Telecommuting and Compensation Concerns during Uncertain Times

United States – KPMG Report on Telecommuting and Compen

In response to the COVID-19 pandemic, many employers in the United States have implemented, or are in the process of implementing, wide-ranging policies that modify their regular operating procedures and alter the normal working environment of their employees. However, while employer-related COVID-19 pandemic response efforts are intended to mitigate the spread of COVID-19, they can also raise complicated tax considerations for individuals and employers.

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Flash Alert 2020-079

In response to the COVID-19 pandemic, many employers in the United States have implemented, or are in the process of implementing, wide-ranging policies that modify their regular operating procedures and alter the normal working environment of their employees.  However, while employer-related COVID-19 pandemic response efforts are intended to mitigate the spread of COVID-19, they can also raise complicated tax considerations for individuals and employers. 

As such, KPMG LLP (U.S.) has published a report that focuses on the initial approaches employers are implementing in response to COVID-19, such as increased telecommuting, and the resultant U.S. tax considerations for themselves and their employees.  The report, “KPMG report: Compensation and benefits concerns in uncertain times – telecommuting and other items,” can be accessed by clicking here (PDF 131 KB).

To view all of the GMS Flash Alerts that have been issued on the topic of COVID-19, please access KPMG’s dedicated COVID-19 GMS Flash Alert topic page.    

WHY THIS MATTERS

While income tax issues may not be at the forefront of employers’ minds in the current environment, employers should be aware of the U.S. tax implications when developing and implementing policies in response to the COVID-19 pandemic in order to mitigate any unexpected tax exposure for themselves and their employees.

The above information is not intended to be "written advice concerning one or more Federal tax matters" subject to the requirements of section 10.37(a)(2) of Treasury Department Circular 230 as the content of this document is issued for general informational purposes only.

The information contained in this newsletter was submitted by the KPMG International member firm in the United States. 

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GMS Flash Alert is a Global Mobility Services publication of the KPMG LLP Washington National Tax practice. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.

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