Hacker Read

tobyhinloopen · 2020-05-25 08:41:04

So tax-free salary? I’m in

nisegami | karma 1352 | avg karma 2.63 · | 2022-11-17 05:32:49

Income tax for non-traditional employment is basically unheard of, so this would be effectively tax free for me.

harryh | karma 13836 | avg karma 3.21 · | 2016-07-14 21:23:41+00:00

Ya, that's a reasonable point. If there were no income taxes, my employer could probably hire me for a lower salary.

Tax incidence is fun!

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hyperpape | karma 8632 | avg karma 3.7 · | 2018-07-17 16:03:23

I believe it's not just tax free, right, it's just priced into your salary. They won't give you the employer contribution back as cash if you decline, will they?

klntsky | karma 454 | avg karma 1.52 · | 2022-06-30 09:14:58

It's not taxes but salaries.

krageon | karma 5600 | avg karma 1.5 · | 2021-11-01 09:02:24

It doesn't really matter whether or not it's taxed, it matters what percentage of the original salary it is :)

benologist | karma 12061 | avg karma 2.51 · | 2013-01-10 11:15:32

Do you think 4.5 months salary is a tax-free alternative?

s73ver_ | karma 904 | avg karma 0.74 · | 2017-09-18 18:00:25+00:00

Salary non-exempt is a thing.

pc86 | karma 24701 | avg karma 2.58 · | 2019-12-18 20:28:12+00:00

No payroll taxes.

vacri | karma 17701 | avg karma 1.83 · | 2014-09-15 21:10:58+00:00

You are, of course, paying income tax on your salary? :)

ulfw | karma 4213 | avg karma 2.08 · | 2014-07-07 16:24:09+00:00

You earn 250K, pay no taxes whatsoever, keep 100K and divide the other 150K equally to two devs (who I assume might not pay taxes either)? Cool

eanzenberg | karma 1637 | avg karma 1.25 · | 2020-05-11 02:51:21

Income is taxed.

lob4tt | karma -1 | avg karma -0.14 · | 2015-03-16 14:22:41+00:00

Zero-salary but all expenses are on the firm account, that is actually brilliant tax strategy.

nine_zeros | karma 2038 | avg karma 1.18 · | 2021-07-16 13:37:29

Is this 2500 taxed or tax free?

Imo after all taxes, a lot of 40 hr/wk salaries are a meaningless gain over $2500

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yo-code-sucks | karma 7 | avg karma 0.05 · | 2016-01-07 08:44:53+00:00

Yup, it's considered taxable income, I usually get paid out yearly for my PTO.

joelrunyon | karma 8027 | avg karma 3.79 · | 2014-10-27 11:40:22

If it's not taxed - then it's not part of their salary (though the IRS is working on that).

tw04 | karma 17157 | avg karma 5.0 · | 2021-06-05 14:54:52

That is completely avoided if the person makes less than 12k/year though. So there is already a loophole, there just hasn’t been enough incentive to use it yet. Although I’d question if that’s why some executives take a $1 salary and the rest in stock. All of their benefits are now tax free*.

yes I realize it’s nuanced and depends on country.

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nightski | karma 6955 | avg karma 2.42 · | 2022-09-07 13:00:13

Yes with the money they received that was income tax free from either yourself or their own job.

rick888 | karma 732 | avg karma 0.65 · | 2011-10-02 12:09:05

"If you do not have a tax card, the employer must withhold 60% of your salary for taxes without allowances."

Sounds great. Where can I sign up!

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alexeisadeski3 | karma 1486 | avg karma 1.63 · | 2014-02-15 22:01:44+00:00

Payroll taxes are of course included.