pay package, taxable v nontax ?

i have a question regarding taxable vs nontaxable pay.

One recruiter told me she can adjust my hourly wage plus or minus 3USD...

Taxable hourly of 20.25

Meals and incentives 245/wk

housing 1500/month

According to my recruiter I'll take home about 1080 or 1180 a week including my subsidy...

OR

Taxable of 17.25

M&I of 245/wk

Housing 454/wk

About 1200 weekly including subsidy...

Is there a huge pro/con to accepting a lower taxable wage? I dont think I will have any loans or credits that will be effect it...

thanks!

sarah

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]

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

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.

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.