Remote work stipend calculator.

What the page compares

The stipend cost is the monthly amount x employees x 12. The office saving is the seats you can give up x cost per seat x 12. The break-even stipend is the office saving divided by employees and by 12: any stipend below it is cheaper than keeping the seats.

Seats saved are rounded to a whole seat. Office savings only count if you can actually reduce space, for example by ending a lease or moving to a smaller floor, so be honest about that percentage.

Tax and policy

Whether a stipend is taxable income, and what receipts are needed, differs by country, state and province and by how the plan is structured. This page does not assume an answer. Ask your payroll provider before setting up a stipend. Stipends are also an employer cost on top of wages, so see the payroll burden calculator. This is not tax or legal advice.

Worked example

Stipend cost = employees x monthly stipend x 12. 25 people at $75 a month cost $22,500 a year, plus $12,500 one-time setup. If 40% of seats (10) at $400 a month go, you avoid $48,000, a net saving of $25,500 a year.

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FAQ

How much should a remote work stipend be?

There is no single correct amount. Set it from what employees actually spend and what you save in office costs; the break-even figure shows your upper limit.

Is a work-from-home stipend taxable?

It depends on where you are and how the plan is set up. Confirm with your payroll provider or tax adviser.

How is the break-even stipend calculated?

It is the yearly office cost avoided, divided by employees and by 12 months.

Does it include internet and phone?

Include them in the monthly stipend you enter. The page treats the stipend as one number.