Does working from home change tax implications for businesses and employees?

An employee’s work from home status will change certain tax implications for both employer and employee. While home office expenses have not been allowed as a deduction for employees since 2018, this year employers can help employees by buying equipment and giving it to the employee to use, which will qualify as a deduction for the business. The employee can also enter into an Accountable Plan. The employer can reimburse the employee for certain home office expenses and that money is tax-free to the employee and a deduction to the employer. Finally, the employer can make qualified disaster relief payments to the employee, which fall under the same status as an Accountable Plan.