pay package, taxable v nontax ?

travelsohard · Jul 3, 2014

First of all, where is the assignment? A $1500 subsidy is low for some states and average for others. I would say there's no big pro or con. Companies like to offer a lower taxable wage to make your overall package look more enticing. Do the math and pick whichever makes more money.

shortstuff52 · Jul 3, 2014

This is for Austin Texas. What does housing range in Austin or general Texas?

travelsohard · Jul 3, 2014

Austin is booming right now but you could find a decent place for a little less than that. If you are taking company housing take the higher per-hour rate. If not, the opposite. You could always ask for a little more stipend money-recruiters often have wiggle room.

NedRN · Jul 3, 2014

Generally you are always best off minimizing taxation - ask any rich person! Downsides include reduced credit (although you can usually present your total compensation picture to a progressive banker and end up with the same credit), and reduced worker's comp and Social Security benefits. Workers comp can be challenged and they will consider your housing benefit as compensation. If you are long term traveler and a disciplined saver and invest your tax savings conservatively, you can easily beat investing in Social Security - by a huge margin. If you are short term traveler, the few thousand dollars extra from tax savings will make no material difference in your Social Security retirement amount but will make a real difference in your pocketbook now.