Contracts, taxes and more: 4 things to consider before going fully remote

Employees must be careful about switching to fully remote work, as legal ramifications and workplace pitfalls could be a reality, The Washington Post reported Jan. 27.

Due to the ongoing pandemic, occupied desks are 37 percent lower in 2022 compared to 2019, while 58 percent of full-time employees are working in a hybrid model, according to the report.

But remote workers could face some challenges:

1. Contracts

Reading a contract is one of the most important steps in the hiring process, and remote workers may not get the opportunity to read the fine print. This is crucial, as contracts can contain noncompete clauses or legal statements that forbid an employee from working for a rival company for a certain amount of time. 

2. Rules

Employees may be working from home, but workplace policies still remain intact. 

Workplace rules and benefits are still applicable regardless of an employee's location. Employees should report and track their hours, be aware of time zones and know the office rules.

3. Reclassification

Employees whose jobs have changed because of the switch from in-person to remote work could face reclassification from employers, meaning that they could go from employees to independent contractors. This switch would cause employees to lose certain benefits they were previously entitled to.

4. Taxes

If an employee moves from one state to another while working from home, that employee must pay the taxes associated with the state in which they work, The Wall Street Journal reported. This change could affect employee pay. 

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