Late Night Ubers Counted as Taxable Income?
EDIT: someone in here correctly noted that if the company grosses up your income it will net out the tax liability. I believe this is the case so apologies for my sensationalized rant below and the jumpscare title. Happy Ubering folks!
We got an email from our internal team today saying that ground transportation would be counted as imputed income and will be grossed up on our W2s. I find this ridiculous as many of us would have likely walked or taken the bus had we known about this earlier. Additionally this is unfairly impacting analysts and associates who are expected to stay late at the office vs. seniors who leave at reasonable times and can walk home. Apparently this is part of new IRS tax code so good luck to all my fellow monkeys - giving you all fair warning so that you aren't blindsided when tax season comes around.
What's next? Comped meals counted as taxable income? The banking lifestyle is quickly losing its luster as even the most basic perks of working in this industry are disappearing before our eyes.
“No one making under $400k will pay more taxes” - Joe Biden
time to vote in that Vivek guy. i like him
“Surely the indian politician won’t turn out to be a scammer!”
as opposed to all the other politicians who are honest people
rather a scammer than the crime syndicate we got right now
So comped Ubers are being added into your taxable income now? I’m starting soon and if so I’m just going to walk home or get a scooter then. Also couldn’t they give gift cards or something to circumvent this lol
if you'll buy a scooter don't forget to also buy the equipment/clothes for it (mask is non-negotiable)
First, laws can only applied prospectively and not retrospectively so for the trips you took before this new tax code change you pay nothing
second, not sure about this, but if let's say that this change in the tax code was made some months ago and the company informs you now, wouldn't that be their fault? more so if the internal policies were now amended, wouldn't that mean that the company allowed you to still use the Uber and they will support any related payment including taxes for the period since the new tax provisions appeared until they informed you? The logic here is that you were using it based on the internal policies that you were familiarized with when you joined the firm, so until new amendments, past policies were the ones applied so if they will add on your taxable income the trips from the last month maybe I'll check it with a lawyer
but yeah, for future prospects this sucks
I think this is likely the latter situation as the language makes it sound like the code changed after the COVID emergency period officially ended in April. However I and others only became aware of the policy this week from the bank. Either way this is extremely frustrating and is making me resent banking even more than I already do.
I am not the type of person to pursue legal recourse nor have I ever had the need for a lawyer but the amount we are talking about is not nominal (likely thousands). Although I am grateful to be making a great income at my age and acknowledge that late night transportation is a perk I did utilize, the principle of this makes it feel unjust. Honestly, I am not sure how to approach this but have considered asking fellow analysts / associates to join me in some kind writing some kind of letter etc.
Is this even legal wtf
Anyone analyst to VP should be comped as a 1099 employee
No thanks, I'll take my 401k match, great insurance, and PTO policies.
Lol what? The 1099 test literally requires that the business doesn't control the independent contractor's work and hours... IB analyst is the least eligible 1099 job in the world.
You also don't get any labor law protections, insurance, 401k... I'll take a small hit on taxes (which banks will likely gross up going forward)
Ya fuck that man just get your benefits instead
I don't think this is new. I heard about when I was an analyst. Pretty sure it applied to meals as well consumed on the company's dime, I think it was triggered once you hit like 10k in those types of expenses (Uber and food). It generally ends up being a negligible amount. Tough if you're taking Ubers to Brooklyn or something every night though, adds up quick.
Sorry, not an expert on taxes, but if the company is grossing up doesn’t that mean that they are paying the taxes on your behalf and you have no liability?
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