Do you mean IRS? I will answer with just a few of the things that need to be looked into.

Working from home does bring extra considerations:
(1) What expenses are reimbursable under IRS rules and accountable plans; what expenses are deductible by the employee, etc. Does the employer pay to "rent" an office from the employee? There are a whole set of IRS rules on that issue alone. Then you can get into the whole set of whether the employee is using employer property for personal use and whether it should be taxable to them (ex. cell phone, computer or company car)
(2) Workers compensation insurance -- if the employee hurts themselves while working at home, which insurance is primary? Homeowners or WC?
(3) does a work-at-home employer presence mean the company now needs to declare state taxes/registration
(4) company policy regarding child care during work hours
(5) company policy regarding work hours -- especially if they are non-exempt employees; also need a way to track work hours


Just some things to think about. I would strongly suggest talking to a CPA regarding the taxability issues in #1 if the IRS was your question. Our CPA is very good at being up on these types of laws.