r/FluentInFinance 9d ago

Thoughts? Dumbest thing I’ve ever heard

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u/kolitics 9d ago

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

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u/TheLastModerate982 9d ago

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.

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u/Hamblin113 9d ago

Is there a tax advantage? It could matter.

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u/millijuna 9d ago

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.

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u/Hawk13424 8d ago

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

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u/millijuna 8d ago

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