Reuters reports an employee living an hour away from New York City would be paid 15% less if they worked from home.
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But a colleague working remotely in the city would see no pay cut.
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Employees who leave San Francisco for Lake Tahoe could reportedly see a pay cut of up to 25%.
The company says salaries have always been determined by location.
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Google announced in July that it was delaying employees' return to the office until mid-October.
The company will also require employees to be vaccinated against COVID-19 once offices are fully open.
The company has more than 130,000 employees across the globe.