Remember the good old days before the 2017 Tax Cuts and Jobs Act (TCJA) when regular employees could deduct unreimbursed business expenses like a home office? If your office space met the IRS qualifications and you were working from home for the "convenience of your employer," then you could include those unreimbursed expenses as miscellaneous deductions (subject to the 2% AGI floor). That all changed with the TCJA. Now only self-employed individuals qualify for a home office deduction. More on that in another blog.
It couldn't have come at a worse time. During the COVID pandemic, millions of workers have gone remote. Many employers stepped up with tax-free reimbursements under IRS Section 139 qualified disaster relief payments or with revised accountable plans. Many have not. We've heard stories of employees shelling hundreds and hundreds of dollars out of their own pocket for office equipment, internet upgrades, telephone, and other expenses. Not to mention other typical indirect expenses like utilities. It doesn't seem fair, but there is some consolation.
Some states have passed labor laws requiring employers to reimburse employees for work expenses incurred as part of their job responsibilities. These states include California, Illinois, Massachusetts, Iowa, South Dakota, and yes our very own New Hampshire!
An employee who incurs expenses in connection with his or her employment and at the request of the employer, except those expenses normally borne by the employee as a precondition of employment, which are not paid for by wages, cash advance, or other means from the employer, shall be reimbursed for the payment of the expenses within 30 days of the presentation by the employee of proof of payment.
Enforcement and administration of this section by the department shall be as provided for wage claims under RSA 275:51.
An action by an employee to recover unreimbursed expenses may be maintained in any court of competent jurisdiction by any one or more employees for and in behalf of himself or herself, or themselves, or such employee or employees may designate an agent or representative to maintain such action.
An employer who willfully violates the provisions of this section may be assessed interest and a civil penalty of up to $1,000 per violation, which shall be deposited into the department of labor restricted fund established in RSA 273:1-b.
The commissioner shall adopt rules under RSA 541-A necessary for the administration of this section.
If you are a New Hampshire employee working from home at the direction of your employer and you have incurred unreimbursed home office expenses such as internet and communications, then you might be legally entitled to reimbursement under this law. Speak with an attorney.