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Minimum Wage Allowances

KenBKenB 28 Posts
in Compensation Vote Up0Vote Down
[font size="1" color="#FF0000"]LAST EDITED ON 07-20-01 AT 09:14AM (CST)[/font][p]In NY and California, and perhaps other states, employers are allowed an allowance against the minimum wage of a certain dollar amount if they provide housing and/or meals to their employees. Does anyone know how this works practically? Does the employer make a calculation for the food and housing and pay a lower gross wage? Does the allowance appear on the W-2 as a deduction against gross income and if so, is it before tax or after tax? Seems to me if it is a deduction and is after tax, then the employee would be receiving less than the state law intended to allow as an allowance against the minimum wage.
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