This is simply an example, so please bear with me.
ExxonMobil (headquartered in TX) offers me a software development position as a W2 employee, with my total compensation being $5,000/month. They give me two options:
- As W2, base salary is $5,000/mo.
- As W2, base salary is $2,500/mo + $850/mo car allowance + $1,650/mo per diem.
In both, the total compensation is $5,000/mo. The difference is the division in pay.
The benefits are the same in both.
I'm leaning towards the 2nd option since I would pay less in SS and medicare. But then again, I'm new to this so that's why I ask.
Which would you choose?
Note: I chose ExxonMobil because they're in Texas.