California Employment Law
California Employment Law Questions Answered by Legal Experts
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As I am sure you know by now, any employment contract is negotiable. So, as to whether or not there is validity to this, if an employer agrees to do it, it is entirely an option. However, there are some positives and negatives to all parties involved.
Completely understand, lets hear them.
The benefit to you would be that you would basically be receiving free income. The negative would be that your employer would be able to take away your place to live at any time. If you engage in such a contract you should make sure that you sign a contract that is for cause.
You do not want to run the risk of loosing your income, and your place to live all at the drop of a hat, for no apparent reason.
Yes, I completely understand. My concern is more to the tax law itself. Would a full time appartment for me that the company is providing, be considered income anyway?
no it would not
Though the company would be able to use the apartment as a deduction for themselves
which would be the benefit to them
Exactly, and because my salary is at the line of a tax bracket, it greatly benefits me to lower my salary and accept an appartment
granted, all of the contracts were in place to make sure the appartment was secured
Financially yes, however, again, and I cannot stress this enough, I have had numerous people call me over the years complaining about getting fired and being evicted
Which would be the right of the company absent contractual language to the contrary
As for the company, they may not want to do this, as many locations require long term leases
So, there is no tax law that states that if a company were to provide an appartment for me, full time, that it would be considered "compensation" and that I would have to declare it
Correct. The apartment would not be considered compensation unless it was strictly written into the contract to be so
i.e. you get an allowance of $2,000 a month to rent an apartment would be compensation
different from you are provided withXXXXX/p>
great, thank you for your time
Not a problem. Have I fully answered your question today?
Yes, you have. Thanks again.
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