Tech CEO says he was hit with up to $30,000 in surprise taxes and fees after a software engineer worked remotely in California and Texas without telling the company

• A surprise from a remote worker cost tech startup GravyWork $500,000.

• The CEO didn't register his business in California and Texas because an employee worked there.

• Workers taking advantage of remote work policies lie to their bosses about their location.

In the past, working from a tropical island or a cabin in the woods was a dream come true for some workers.

According to a Wall Street Journal report, companies can end up paying the price if they don't alert their employees.

Alex Atwood, the chief executive officer of tech startup GravyWork, told the Journal that his Virginia-based company may have to pay an estimated $500,000 in total costs after a former software engineer worked remotely for long stretches in California and Texas. He told the Journal that he didn't register his business in those states.

Between $20,000 and $30,000 in taxes, registration fees and penalties were racked up by his company. He spent a lot of time in meetings and dealing with accounting and HR headaches trying to fix the problem.

Several other employees admitted to working across international borders, which caused concerns over cyber security.

He told the Journal that they didn't even think about them.

Insider asked for additional comment from Atwood, but he didn't reply.

According to research from MBO Partners, the number of remote workers in the US has gone up 131% since the introduction of work-from- home policies.

Most companies don't allow full-time employees to work internationally because of regulatory risks and concerns over compensation packages that don't match the local cost of living.

Hannah Towey reports that some white- collar employees have decided to push the boundaries of their new freedom without telling their bosses.

In order to escape the cold winters in Chicago where he is based, one marketing specialist secretly worked full-time in countries like Panama. A worker from Miami moved with his spouse and took full remote jobs in marketing and consulting because it was cheaper.

A Berlin-based remote worker went so far as to set up a personal computer with a virtual private network so the company wouldn't be able to track him.

To avoid potential work-from- home penalties, a tax expert told the Journal that employers and employees should check financial policies in a particular state if a worker chooses to live there for a month or longer.

Business Insider has an article on it.