Coworking spaces are becoming increasingly popular in today’s hybrid and remote work. In fact, according to Zippia, in the U.S., “the number of coworking spaces has grown by roughly 55% since 2017.”
Of course, we’re a bit biased and think they’re pretty great. Coworking offers a more flexible and often more affordable alternative to leasing private office space. It also allows remote professionals to surround themselves with like-minded individuals while also providing an alternative to working out of their home offices where the 4 walls are closing in or noisy, busy coffee shops.
Most coworking spaces offer various options to fit your budget and needs. Whether you just need a place to work that isn’t your kitchen table, need to hold meetings or training sessions, or require private office space a few times a month, coworking spaces provide solutions to all of your needs.
And guess what? Some companies offer remote work stipends, which can help cover the cost of your coworking membership!
We’re sure you have many questions, so here’s everything you need to know about remote work stipends and how you can take advantage of them to fund your coworking membership.
What Are Remote Work Stipends?
Remote work stipends are essentially allowances provided to employees to enable them to purchase items or services to make their remote work environment more productive and comfortable. These stipends cover the additional costs associated with working remotely – such as internet, office supplies, home office equipment and furniture, etc.
Why Do Companies Offer Remote Work Stipends?
Remote work stipends are becoming more common, and they are definitely something you should look into with your employer, especially if you’re considering investing in a coworking membership. At Spark Offices, we accept remote work stipends, and many companies offer them as an additional incentive for their employees.
Many companies feel that remote work stipends help to attract better candidates and help them to retain more employees over time. Additionally, many companies feel that offering this type of benefit allows employees to be more productive by giving them access to whatever tools and resources they need to do their jobs well.
How Can Remote Work Stipends Be Used?
It’s up to the company offering remote work stipends to determine how much of a stipend to offer and how often. This type of stipend is typically used in one of the following ways:
- Remote Work Equipment & Supplies
Remote workers use funds to buy equipment, furniture, and/or other supplies (like coffee or tea) or a coworking membership to be more productive in their remote environment. The stipends are usually paid as a one-time lump sum, or the stipend can be ongoing, such as monthly, quarterly, or annually.
- Remote Work Perks
In this case, remote workers use funds to purchase things that an on-site team might benefit from, such as food, professional development training, wellness programs, and other perks to help increase overall productivity.
Are Remote Work Stipends Taxable?
In most cases, a remote work stipend will count as taxable income separate from the salary you receive, meaning these funds are considered taxable. However, cell phone stipends and reimbursements for supplies an employee purchases are not taxable as long as they are documented, clearly work-related, and deemed necessary.
Most remote work stipends are offered as an additional payment and therefore are typically considered taxable. However, some employers may offer to cover the cost of the tax implications if they choose. When working for a company offering a remote work stipend, it’s essential to clarify how it will work before accepting payment so you can prepare for potential tax liabilities.
What is a Typical Remote Work Stipend Amount?
Many companies offer remote work stipends, but not all. Some companies may provide a set amount for a remote work stipend for all employees, or they may choose to offer different amounts based on the position and its needs. Remote work stipends vary widely, but $50-$250 per month and/or an annual stipend of $1000 is the standard.
During the pandemic, many companies, including Google and Shopify, offered employees $1,000 to spend on equipment and supplies to set up a home office.
Ask Your Employer About Remote Work Stipends
If you work remotely or in a hybrid remote position for a company, it’s worth asking your employer if they would be willing to provide a remote work stipend to cover the cost of your remote expenses. It never hurts to ask! If you need help convincing them to offer this benefit, here’s a significant statistic you can use:
“Remote workers are 35–40% more productive than their office counterparts.”
Take Your Business to the Next Level
Ready to get out of your kitchen and into some quiet space where you can focus? We’d love to have you join our community!
Get in touch with us today to find your space at Spark Offices.