Another question have have... I worked for Millennium Management based in Beachwood, Ohio as a aprtment maintenance worker. My contract with them was, a hourly salary and a apartment that was valued in the contract as so $xxx a month. Now, the free apartment was not taxed and not on my tax statements at the end of the year that they gave me. But, when I missed a day of work, they charged me a pro rated amount of rent for that day and deducted it from my payroll check. Is this legal for them to do, or are they trying to cheat the IRS. Its not fair to me either, because if I try to collect unemployment or apply for a loan, will they consider the free rent as part as my salary. No, they wont. But how is it free, when I have to pay rent when I miss work?
2007-03-17 18:29:32 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
You are probably right about the value of rent as pay and cheating the IRS, etc. I guess it would be how it is considered, a company car, or phone is usually not taxed or counted as wages, though to say. Might have to talk to your local bureau of labor or what ever it's called in your state.
However you may want to "let sleeping dogs lie" because you too are not paying taxes, social security and medicare on the value of apartment either. You could owe back taxes. That my add up to much more than a days rent here and there for a few missed days.
2007-03-17 18:43:49 · answer #1 · answered by hogie0101 4 · 0⤊ 0⤋
I don't think it's illegal because your contracted for a hourly rate plus free room for working for them. Now if you miss a day without calling in sick or using a vacation day they have every right to deduct from you. You were contracted for an hourly plus room for a 5 or 6 day or even 7 day work week and if you decided to take 4 days off a week they would make more money renting the room out to someone that pays rent. To be for sure you should call a lawyer who does not charge a consultation.
2007-03-17 18:42:28 · answer #2 · answered by Anonymous · 0⤊ 0⤋
YES, the apt is taxable and you earn unemployment if the position IS NOT exempt under Ohio labor laws.
I suggest that you stop this relationship; and return to regular
rental rates and get paid normally by an employer. SO many things can go wrong with the arrangement you have.
2007-03-17 18:34:50 · answer #3 · answered by kemperk 7 · 0⤊ 1⤋
The rent is tax-free compensation for your work. If you miss work, it's proper for them to deduct that compensation from your pay in the same manner as they don't pay you your regular wage for time not worked.
Lodging provided on your employer's premesis, for your employer's convenience, and as a condition of employment is not taxable income to you.
2007-03-17 20:38:50 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋