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Re: [newtech-1] hiring programmers-incentive, housing or otherwise

From: Finnbar
Sent on: Thursday, January 24, 2008 12:53 PM
There are plenty of excellent programmers in New York. There are more  
excellent programmers in Silicon Valley, and I assume that is about  
concentration of excellent work opportunities and outdoors lifestyle.

On Jan 24, 2008, at 12:27 PM, Miles Rose wrote:

> who said anything about saving taxes, the point is how many good
> programmers are not coming to nyc because of the cost of real estate
> and if that incentive would attract good people who wouldn't otherwise
> come here. or is it the Darwinian thing....
>
> M
>
> On Jan 24,[masked]:23 PM, Avi Deitcher <[address removed]> wrote:
>> Daniel,
>>
>> I think John and I both agree that you can do it, but not (or at  
>> least
>> highly unlikely legally) without incurring the same tax impact on  
>> employer
>> and employee as if you had paid the person direct cash as payroll.  
>> The only
>> advantages are: (a) you can pay lower cash wages (if that helps),  
>> and (b)
>> you may eliminate an inconvenience for the employee. For the  
>> latter, it is
>> much easier on employer and employee to just give them a higher  
>> salary or
>> stipend, and agree to pay some brokerage firm to help the employee  
>> find a
>> place.
>>
>> Avi
>>
>> Daniel Honig wrote:
>>
>> There is a .NET on firm specializing in financial services named  
>> Infusion
>> that advertises
>> an "Apartment in New York"....
>> as part of the 1 year deal they recruit people for.
>>
>> ____________________­____________
>> From: [address removed] [mailto:[address removed]] On Behalf  
>> Of John
>> Sent: Thursday, January 24,[masked]:15 PM
>> To: [address removed]
>> Subject: Re: [newtech-1] hiring programmers-incentiv­e, housing or  
>> otherwise
>>
>>
>> Avi gives good practical advice and I agree with him, however, its  
>> not
>> accurate to say "you cannot do it".
>>
>> On the one hand, if you have a vacant apartment owned by the  
>> Company and
>> allow an employee to live there rent free, as part of his  
>> compensation and
>> the cost of the apartment is an expense,of the Company, then the  
>> IRS may
>> impute the fair value of the rent to the employee living there and  
>> it could
>> also require the Company to pay various payroll taxed on that same  
>> (imputed)
>> amount.
>>
>> However, on the other hand, generally speaking, if a person owns an
>> apartment, there is nothing preventing them from allowing someone  
>> to stay
>> there (although again, this is not advisable b/c certain legal  
>> issues will
>> arise if there is an issue terminating this arrangement).  If the
>> arrangement is tied to a job or compensation, then the analysis above
>> certainly will apply .
>>
>>
>>
>>
>>
>> Avi Deitcher <[address removed]> wrote:
>> Miles,
>>
>> Speak to a good tax and benefits attorney. In general, you cannot
>> provide housing for your people; it will be treated as a fully  
>> taxable
>> benefit, which is no different than regular income (but I am not a
>> lawyer, so check with them). From a strategic perspective, it is a  
>> bad
>> idea as well. Do you want to be managing residential real estate when
>> you have enough challenges managing a start-up? What about
>> set-up/tear-down costs (leasing the place, what happens when the  
>> person
>> leaves/is terminated/etc.)?
>>
>> In some places in Asia where renting space is very high (e.g. Hong
>> Kong), firms will provide a housing stipend that is separate from the
>> paycheck, but that is also sometimes treated separately for tax
>> purposes. Expats get housing allowances, but that also has special  
>> tax
>> treatment.
>>
>> Short form: don't do it. If you want to pay someone extra, pay them
>> more. If there is some tax benefit to paying housing (which I  
>> doubt, but
>> again speak with your tax and benefits professionals), pay it as a
>> housing stipend.
>>
>> Avi
>>
>> Miles Rose wrote:
>>> Im working on a new startup. We need a bunch of young saavy web 2.0
>>> kinda folks, heavy database, yada, yada, yada, blah, blah, blah.
>>>
>>> One of the impediments to working in NYC is the cost of an  
>>> apartment.
>>> To those on this list does the fact that the job come with an
>>> apartment a good incentive?
>>>
>>>
>>>
>>> --
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>> Meetup.
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>>> Meetup.com Customer Service: [address removed]
>>> 632 Broadway New York NY 10012 USA
>>>
>>>
>>
>> --
>> Avi Deitcher
>> [address removed]
>> [masked]ATOMIC x100
>> [masked] x100
>>
>>
>>
>>
>> --
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>> Tech
>> Meetup.
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>>
>>
>>
>>
>> --
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>> Meetup.
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>> --
>> Please Note: If you hit "REPLY", your message will be sent to  
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>> )
>> from NY Tech Meetup.
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>> --
>> Avi Deitcher
>> [address removed]
>> [masked]ATOMIC x100
>> [masked] x100
>>
>>
>>
>>
>>
>> --
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>> Meetup.
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>
>
>
> -- 
> Time to Reboot.
> FREE Registration
> www.SiliconAlley.com­
>
>
>
> --
> Please Note: If you hit "REPLY", your message will be sent to  
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> Meetup.
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