compensation

Remote Work Stipend: What Companies Offer and What to Expect

Also known as: home office stipend, remote work allowance, WFH stipend, work from home allowance

A monetary benefit provided by employers to remote workers to cover costs associated with working from home, such as internet, office equipment, coworking space memberships, or general home office expenses.

A remote work stipend is a financial benefit that employers provide to help cover the costs of working from home. These stipends typically come in two forms: one-time setup allowances ranging from $500-$2,000 for purchasing office furniture and equipment, and recurring monthly stipends of $50-$200 for ongoing expenses like internet, utilities, or coworking spaces. Approximately 60-70% of remote-first companies now offer some form of home office stipend, though the amount and structure vary widely. For a complete breakdown of average amounts, what stipends cover, and how to negotiate, see our detailed home office stipend guide. Unlike salary, most stipends are considered taxable income in the United States unless they follow strict accountable plan reimbursement rules.

Definition

remote-stipend

A remote work stipend is employer-provided compensation specifically designated to offset expenses incurred while working from home or remotely. Unlike traditional office environments where employers directly provide workspace, equipment, and utilities, remote work shifts many of these costs to employees. Stipends address this imbalance by providing funds for home office setup, ongoing operational costs, or alternative workspace memberships. These payments can be structured as one-time allowances, recurring monthly benefits, annual budgets, or expense reimbursements, each with different tax implications and flexibility levels.

Key Facts
Average one-time setup stipend: $1,000-$1,500 for home office equipment
Average monthly stipend: $50-$150 for ongoing expenses like internet and utilities
60-70% of remote-first companies provide some form of home office benefit
Most stipends are taxable income unless structured as accountable plan reimbursements
Common coverage: desk, chair, monitors, internet, and coworking memberships

Types of Remote Work Stipends

One-Time Setup Stipends

One-time setup stipends provide a lump sum for employees to establish their home office. These typically range from $500 to $2,000, with some companies offering up to $3,000 for comprehensive setups.

What setup stipends typically cover:

  • Desk and ergonomic chair ($300-$800)
  • External monitor(s) ($200-$600)
  • Keyboard, mouse, and peripherals ($100-$200)
  • Lighting and webcam for video calls ($50-$150)
  • Noise-canceling headphones ($150-$350)

Most companies provide setup stipends within the first 30-90 days of employment and may offer annual refresh budgets ($200-$500) for equipment upgrades or replacements.

Recurring Monthly Stipends

Monthly stipends provide ongoing support for operational expenses that accumulate over time. These typically range from $50 to $200 per month.

Common monthly stipend uses:

  • High-speed internet service ($50-$100)
  • Portion of utility bills (electricity, heating/cooling)
  • Coworking space day passes or memberships
  • Coffee shop work expenses
  • Software subscriptions not provided by employer

Annual Allowances

Some companies provide annual budgets instead of monthly payments, typically $600-$2,400 per year. This approach gives employees flexibility to use funds as needed—perhaps front-loading for equipment purchases or saving for a coworking membership.

Expense Reimbursement Models

Rather than providing stipends, some employers reimburse specific approved expenses. This approach offers potential tax advantages (reimbursements under accountable plans may not be taxable income) but requires employees to submit receipts and wait for processing.

Real Company Examples

Shopify

Shopify provides a $1,000 home office stipend for new employees to set up their workspace. This one-time allowance helps cover essential equipment and furniture for a functional remote setup.

GitLab

GitLab offers one of the more comprehensive remote stipend programs with a $1,500 annual allowance for home office equipment and coworking space. Their transparent handbook documents how employees can use these funds for ergonomic setups, external monitors, or coworking memberships.

Buffer

Buffer takes a flexible approach with tiered benefits: a $500 initial setup stipend, plus $200/month for coworking spaces, internet, or coffee shop work. They also provide a $500 annual computer upgrade stipend, recognizing that hardware needs evolve.

Basecamp

Basecamp provides a $1,000 one-time setup allowance and covers coworking space memberships up to $200/month for employees who prefer working outside their homes.

Automattic

Automattic (the company behind WordPress.com) offers a home office allowance plus coworking stipend, and notably provides employees with Apple hardware directly rather than asking them to purchase it from a stipend.

Tax Implications

Understanding the tax treatment of remote stipends is crucial for accurately calculating their value.

Taxable Stipends (Most Common)

When employers provide stipends as flat payments without requiring receipts or accounting for specific expenses, these amounts are generally treated as taxable income. The payment appears on your W-2 (in the US) and you pay income tax on the full amount.

Example: A $100/month internet stipend ($1,200/year) at a 24% marginal tax rate actually nets you approximately $912 after federal income tax. State taxes further reduce the effective value.

Non-Taxable Reimbursements (Less Common)

Under IRS “accountable plan” rules, reimbursements may be non-taxable if:

  • The expense has a business connection
  • The employee adequately accounts for expenses (submits receipts)
  • Excess funds are returned to the employer
  • Reimbursements correspond to actual expenses incurred

This approach requires more administrative overhead but provides better tax treatment for employees.

International Considerations

Tax treatment varies significantly by country. Some jurisdictions (like the UK) have specific allowances for working from home expenses, while others may treat all stipends as taxable benefits. Remote workers should consult local tax guidance or a tax professional familiar with remote work arrangements.

How to Negotiate for Remote Stipends

During the Offer Stage

When evaluating a job offer without stated remote stipends, you can negotiate for them:

  1. Research market rates: Know that $1,000-$1,500 setup stipends and $100-$150 monthly allowances are common benchmarks at remote-first companies.

  2. Frame it as mutual benefit: “A proper home office setup will help me be more productive from day one. Would the company consider a one-time setup stipend of $1,500?”

  3. Offer flexibility: If a flat stipend isn’t possible, suggest an expense reimbursement model or specific equipment purchases the company handles directly.

  4. Consider the full package: If base salary negotiation stalls, stipends can add meaningful value. A $150/month stipend adds $1,800/year to your compensation.

If Your Current Employer Doesn’t Offer Stipends

Present a business case to your manager or HR:

  • Calculate costs you’ve absorbed working remotely (internet upgrade, equipment purchases, utilities)
  • Reference industry standards and competitor offerings
  • Propose a specific amount with clear guidelines for approved expenses
  • Suggest a pilot program if company-wide implementation seems unlikely

When interviewing for remote positions, ask these questions to understand the full stipend picture:

Setup and Equipment:

  • “Does the company provide a home office stipend or equipment allowance?”
  • “Is hardware (laptop, monitors) provided directly or purchased through a stipend?”
  • “Is there an annual equipment refresh budget?”

Ongoing Support:

  • “Are there monthly allowances for internet or other ongoing expenses?”
  • “Does the company cover coworking space memberships?”
  • “How are these stipends structured—flat payments or reimbursements?”

Practical Details:

  • “When are stipends paid—upfront or after a probationary period?”
  • “Are there restrictions on what the stipend can be used for?”
  • “How are stipends handled for international employees?”

Tax Clarity:

  • “Are stipends paid as taxable income or as non-taxable reimbursements?”
  • “Will these amounts appear on my W-2/tax documents?”

What Makes a Good Remote Stipend Policy

When evaluating companies or designing your own stipend requests, look for these qualities:

Adequate amounts: Setup stipends under $500 may not cover even basic ergonomic needs. Monthly stipends under $50 barely offset internet costs in many areas.

Reasonable flexibility: Policies that restrict purchases to specific vendors or narrow categories limit employee ability to optimize their workspace.

Clear guidelines: Employees shouldn’t have to guess what’s approved. Good policies provide explicit lists of covered expenses and any exclusions.

Timely access: Setup stipends available only after 90 days force employees to work with suboptimal setups during their onboarding period—counterproductive for everyone.

Transparent tax treatment: Companies should clearly communicate whether stipends are taxable and how they’ll appear on tax documents.

Frequently Asked Questions

Are remote work stipends taxable?

In most cases, yes. When employers provide flat stipend payments without requiring expense documentation, these are treated as taxable income in the United States. They'll appear on your W-2 and you'll owe income tax on the amount. However, if your employer uses an 'accountable plan' where you submit receipts and return unused funds, reimbursements may be non-taxable. Always verify your company's specific structure and consult a tax professional for your situation.

What's a reasonable home office stipend to expect?

For one-time setup stipends, $1,000-$1,500 is standard at established remote-first companies, with some offering up to $2,000-$3,000. Monthly ongoing stipends typically range from $50-$200, with $100-$150 being common. Startups or companies new to remote work may offer less or nothing, while well-funded remote-first companies tend to be more generous. Geographic cost-of-living adjustments may also affect amounts.

Can I negotiate for a remote stipend if the company doesn't offer one?

Yes, and it's increasingly common to do so. Frame your request around productivity and professional workspace needs. Research what similar companies offer and propose a specific amount. If a traditional stipend isn't possible, suggest alternatives like direct equipment purchases, expense reimbursement, or a one-time signing bonus designated for home office setup. Even small stipends add meaningful value to total compensation.

What can I typically spend a remote stipend on?

Common approved expenses include: office furniture (desk, ergonomic chair), monitors and display equipment, keyboard, mouse, and peripherals, internet service upgrades, webcam and lighting for video calls, noise-canceling headphones, and coworking space memberships. Some companies allow broader spending on home utilities, coffee shop expenses, or wellness items. Always check your specific company's policy, as restrictions vary significantly.

Do remote stipends differ for contractors versus employees?

Yes, contractors typically don't receive stipends since they're expected to maintain their own workspace and equipment as part of their business operations. However, some companies offer equipment allowances or charge-back options for long-term contractors. Contractors should factor home office costs into their rate negotiations—a fully-equipped home office can cost $2,000-$5,000 to establish and several hundred dollars monthly to operate.

What happens to my home office equipment if I leave the company?

Policies vary by employer. Many companies allow employees to keep equipment purchased through stipends, especially for items like chairs, desks, and peripherals. Company-provided hardware (laptops, phones) typically must be returned. Some companies require return or buyback of high-value items purchased within a certain timeframe of departure. Review your employment agreement and stipend policy to understand specific terms before making purchases.

Last updated: