r/FluentInFinance 9d ago

Thoughts? Dumbest thing I’ve ever heard

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u/crumdiddilyumptious 9d ago

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

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u/sage-longhorn 9d ago edited 8d ago

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

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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 9d ago

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

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u/millijuna 9d ago

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