Author Topic: Cost of living adjustment vs. actual expense reimbursement  (Read 963 times)

chris86820

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Cost of living adjustment vs. actual expense reimbursement
« on: February 20, 2017, 08:25:10 PM »
My job requires I be in NYC about one week per month.  I currently receive a $15,000 cost of living adjustment that is rolled into my salary (so I pay taxes on it, but take a tax deduction.)  I use that cost of living adjustment to pay for my living expenses when I’m in New York.  Costs last year were just under $15,000 (renting a room from a friend for $1,150 per month.)

Would it be more advantageous to ask my employer to reimburse actual living expenses (on an expense report) rather than receiving the $15,000?

Thanks!

jwright

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Re: Cost of living adjustment vs. actual expense reimbursement
« Reply #1 on: February 21, 2017, 08:02:45 AM »
It seems like the amount above your actual spending is effectively extra salary.  Sure it's taxed, but you get the cash right? 

There's no reason to take less money to avoid paying a small percentage of that in tax.

Prairie Stash

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Re: Cost of living adjustment vs. actual expense reimbursement
« Reply #2 on: March 01, 2017, 07:41:12 AM »
Take the salary. If the job changes and you are no longer required to travel will they roll back the salary? Long term its generally better to inflate salaries since you get more in terms of raises.

Or you could look into a cheaper living arrangement, maybe something will come up one day.

 

Wow, a phone plan for fifteen bucks!