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IANAL, but I suspect that there's US law, specifying that there needs to be a clear, transparent formula for pay.

Even convoluted ones, like commissions for sales, or shared tips, are covered by law. I do know this, as I know a number of salespeople and servers.

I suspect that the government needs to know what to tax, and obfuscated pay, means obfuscated taxes.




> I suspect that the government needs to know what to tax, and obfuscated pay, means obfuscated taxes.

You're taxed on what you're paid. The government doesn't do a parallel calculation and tax you on that.


But what you don’t get paid, the company keeps, and it may come under different tax rules.

My experience is that governments are quite interested in where the money goes.


What you don’t get paid is not pay.

That is money that leaves the employer’s account and goes into the employee’s account (or government’s account for tax withholding).

I don’t see how this can be obfuscated.


Yes, but how is this relevant. That is also not calculated based on a pay formula. It's reported.


Eh. Not worth arguing about.

Not my area of expertise. That's why I pay an accountant.


Thank you for contributing your wisdom




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