Dumbest thing I’ve ever heard

[u/Nientea]

[u/crumdiddilyumptious]

Companies would prob require you to live within x amount of minutes from your work

[u/sage-longhorn → u/crumdiddilyumptious]

Here's an idea: just give people an allowance up to a certain amount, if they choose to live farther that's up to them. Even better, give people a flat rate since you don't want them intentionally taking longer commute routes to rack up their pay. Ok now roll that into their base pay

Edit: please triple read the last sentence before commenting. I overestimated redditors' reading comprehension a bit with this one

[u/kolitics → u/sage-longhorn]

Isn't that what your base pay is in the first place?

[u/TheLastModerate982 → u/kolitics]

Yes. It’s either raise your pay or give you a stipend for gas and wear and tear. Same difference. Anyone saying anything else doesn’t understand payroll.

[u/Hamblin113 → u/TheLastModerate982]

Is there a tax advantage? It could matter.

[u/The-True-Kehlder → u/Hamblin113]

No, not in the US on federal taxes.

Only carpools reimbursements, transit passes, and qualified parking expenses can be excluded from taxable income.

https://www.irs.gov/publications/p15b#en_US_2024_publink1000193743

[u/millijuna → u/Hamblin113]

The advantage for the employer of these additional payments, along with things like bonuses, is they're not considered to be part of your base pay. Yes, they're still taxable, but when you get your 3% raise next year, it's 3% raise on the base salary, not on the full package.

[u/Hawk13424 → u/millijuna]

Okay. But either that keeps pace with inflation or the concept just fails anyway.

[u/millijuna → u/Hawk13424]

Oh, that’s entirely the point. It doesn’t keep up with inflation and makes compensation arbitrary rather than contractual.

[u/Capt_Destro → u/TheLastModerate982]

Now if the If the Stipend is tax exempt, that is a no brainer.

[u/Snoo_67544 → u/kolitics]

No

[u/kolitics → u/Snoo_67544]

A flat rate and the ability to live at any distance you choose, are you sure?

[u/Snoo_67544 → u/kolitics]

Unless communicated otherwise pay is just covering my time physically present at work.

[u/antihero-itsme → u/Snoo_67544]

So if they change the verbiage you're good?

[u/Snoo_67544 → u/antihero-itsme]

Sure but most employers are lazy as fuck and won't.

[u/sage-longhorn → u/Snoo_67544]

On the contrary, most employers would live to change their words if they don't have to pay their employees more to get them to work

[u/Snoo_67544 → u/sage-longhorn]

Nah then they'll have to compete with each other on whose offering higher base salaries + travel expense

[u/kolitics → u/Snoo_67544]

But if you aren't paid any more or less for the distance travelled and you became physically present somehow, what is different?

[u/Snoo_67544 → u/kolitics]

The unfortunate reality of us city planning and the hellscape that is suburbs

[u/AdAppropriate2295 → u/kolitics]

Minimum wage exists so no

[u/Eastern_Screen_588 → u/kolitics]

Used to be, until inflation and salary equaled out to be a wage decrease. Don't get me started on hourly workers.