TaxGuyBill
Level 15
03-02-2022
11:26 PM
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@PCChick wrote:
What is the difference in a car allowance and paying higher salary if both are included in W2 compensation?
Calling it a "car allowance" makes the employee feel good about being compensated for wearing down his vehicle.
Calling it a higher salary makes the employee think "hey, I got a raise, but these car expenses are killing me".