Inland Revenue is making it easier for employers to reimburse the expenses of employees who are working from home because of the coronavirus pandemic. A new determination from the tax department means employers can pay employees up to $20 a week tax-free for expenses such as additional heating costs, without having to estimate or show what the employee's actual expenses were. The rules are a "temporary response" to the Covid-19 pandemic and would only apply to payments for expenses incurred between March 17 and September 17, it said. Chartered Accountants Australia and New Zealand welcomed the ruling, which it said would help employers contribute towards the out-of-pocket expenses of employees working from home. Cuthbertson said Inland Revenue was also right to recognise that, for many employers, reimbursing work-from-home costs might not be an option.

Source: Stuff April 30, 2020 04:28 UTC