I am a W2 employee who works from home in a different state from where my company is based. My employer wants to reimburse my home office expenses. Can he do that?

He wants to reimburse me for the fact that I have a dedicated office at my house, pay for my own internet, computer, utilities, etc. He wants to wrap it into one lump sum reimbursement for this year. What should I know as far as the IRS is concerned?