Changing Landscapes: What Business Owners Need To Know Before Allowing Employees to Work From Anywhere

The way that Americans think about the workplace has drastically changed since the COVID-19 pandemic. It highlighted new ways in which businesses can think about how they allow their employees to complete tasks. The number of workers that took on remote work increased during the pandemic. In fact, 57% of workers say they rarely or never worked from home before the coronavirus outbreak.

The idea of being able to work from anywhere or WFA, as it is sometimes known, is an idea that many companies are still considering. A condition for many companies is that certain positions do require workers to live in a certain city, region, or country. That’s why only 5% of positions are truly WFA jobs.

Wait! Before You Make a Decision…

Before businesses commit to the WFA model, some things should be considered. Experts believe that allowing workers to work from anywhere can create administrative challenges or other costly issues.

Workers’ compensation – Since employers are responsible for covering their workers with workers’ compensation insurance, they have to be aware of different policies based on where employees reside. If an employee is living and working in a state that is different from where the job’s headquarters is located, it could create additional fees for the company.

Taxes – Employers could be responsible for sales, income, and local taxes based on where a WFA employee is located. These fees might not come into play when an employee is working in the office. Employers have to withhold state and local income taxes based on where an employee works.

Salary – Employers may have to factor in where an employee lives to determine an appropriate salary. The cost of living differs between states and cities within a state.

Labor laws – States have their own set of labor laws. Employers have to be aware of these laws to comply with the laws. This could mean a lot more administrative work.

Employee benefits – Determining what kind of benefits each employee needs and what is useful to them will depend on where they live. The WFA working model can create a challenge for the human resources department in figuring out health plans, commuter benefits, etc. that work for the company’s budget and its workers.

Alltrust Insurance: Providing the Benefits for Your Company

When you are considering adjusting or adding new elements to your business model, you have to consider how it may impact your employees. Alltrust Insurance works to support companies during this change. Our services cover help with employee benefits, human resources tasks, cost management practices, technology support, and voluntary benefits

Our priority is ensuring that your business is successful. Part of that includes addressing the well-being and happiness of employees. Studies show that your employees’ well-being directly impacts performance while lowering burnout and turnover rates. 

Please contact Alltrust Insurance to guide you through your HR needs. Our team is looking forward to working with you!


More Alltrust Resources