Does reimbursing an employee's home internet bill for remote work count as a taxable benefit?

It depends on how the reimbursement is structured and how closely it's tied to actual work use, which makes this another genuinely fact-dependent area rather than a flat rule. Reimbursing home internet costs for remote work tends to get more favourable treatment when it's reasonably connected to the actual business use of the connection — for example, reimbursing a documented, reasonable amount tied to genuine work-related internet use.

A flat allowance that isn't tied to actual use — a fixed monthly amount paid regardless of what the internet is actually used for or how much of it relates to work — is more likely to be treated as a taxable benefit, since it looks less like reimbursing a specific business cost and more like general compensation.

Because there isn't a single bright-line rule here, employers setting up a remote-work internet reimbursement should think about tying it to some reasonable measure of actual use or cost, rather than picking a round number and paying it out as a flat allowance to everyone regardless of their actual situation. Employees receiving this kind of reimbursement should also understand that the more it looks like a flat perk rather than a genuine cost reimbursement, the more likely it is to show up as taxable income.