Starbucks Baristas: The daily grind
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Spotify isn’t free? (self.starbucksbaristas)
submitted by tourniquette2
I just noticed the charge on my paycheck stub for $8 a month, for Spotify. Why are they selling it like it’s a benefit when they’re really just taking it straight from our check?
StormTheParade 45 points 6m ago
Please look up the definition of imputed income!
Your paystub should have indicated that this is imputed, I believe abbreviated as "IMP"
This means they are adding $8 to your pay as a way to prevent the barista from paying the tax on their taxable benefit, which is what the Spotify benefit is.
Without the imputed income, you would still be paying for Spotify by means of taxes. It is the imputed income that makes this benefit truly 100% free.
Your paystub should have indicated that this is imputed, I believe abbreviated as "IMP"
This means they are adding $8 to your pay as a way to prevent the barista from paying the tax on their taxable benefit, which is what the Spotify benefit is.
Without the imputed income, you would still be paying for Spotify by means of taxes. It is the imputed income that makes this benefit truly 100% free.
tourniquette2 [OP] 23 points 6m ago
Not gonna lie. I’m deeply confused about how that works. I’m an engineering student. I can do calculus, but you give me business math and laws and I’m at a total loss.
But I’ll trust you if you say it’s supposed to look like that because it sounds like you know your stuff.
But I’ll trust you if you say it’s supposed to look like that because it sounds like you know your stuff.
TH00TN00T 17 points 6m ago
Basically they’re saying they charge you $8 but also add $8 to your paycheck so you don’t get taxed on it
letstakeahike468 6 points 6m ago
The effect of imputed income is it increases your gross income and you pay income taxes on it. The benefit is that you’re not paying the sales tax to Spotify, but you are still paying taxes on the benefit amount ($8) to Uncle Sam. Companies do this for gift cards and other things they give to employees when they they have an actual known monetary value.
Zealousideal-Star448 7 points 6m ago
They add 8 extra bucks just to take it away
BabyH1ppo 1 points 6m ago
It's for tax reasons. You are not actually charged the 8 dollars.. Basically
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