Here’s How to Set Up a Remote Work Stipend:
1. First, determine how much you want to offer your team members within what timeframe.
Some examples include offering $100/month, $500/quarterly, or $2,000 annually.
If you are interested in getting insight into what the most successful companies do, we can share some insider information. You can also decide you want to offer a stipend only to remote team members or one to them in addition to what you offer all employees.
2. Secondly, select your perk spending categories.
In the examples above, you'll notice that they most often surround a category of spendings like health and wellness, continuous learning, family, or travel.
Doing it this way allows you to create a custom program for your team and then allows 100% personalization for them.
If you're looking for ideas for spending categories beyond a remote stipend, consider tying them to your company's culture, goals, or important cultural initiatives.
3. Once you have this information determined, now it’s time to decide how you’ll manage the process.
Your options include:
Managing the perk allowance manually
If you choose this option, be prepared to set up a process to track purchases, receipts, balances, approval and paid perks, as well as rejections or ones which need further review. Consider using Google forms to track submissions, excel or Google sheets to track progress, and be sure to create a process to track the nontaxable vs. taxable (for IRS compliance).
Choose software to help you manage this
Options like Compt can help communicate your programs to your team members, track balances and spending, scale the process for you, eliminate a large portion of work, and provide valuable metrics. Plus, Compt is 100% IRS compliant, making you and your finance team's job much easier.
If you're looking for more, we wrote an in-depth guide to set up a lifestyle stipend here.