Not true. If it were based on cost of living, then Google would pay more for you to work from Hawaii than from Alabama. (Spoilers: it doesn't, they're both in the same salary band.)
It's slightly more true that it's based on the local cost of labor, but even more so that it's just based on the state, with carveouts for MSAs (which are defined based on county) surrounding certain offices commanding higher salaries.
You'd make just as much working remotely in Matamoras, PA as you would working out of the NYC office in Manhattan.
You would think that Mountain View based Google, being registered as a Delaware Corp, would understand the benefits of legal residence being different than practical residence.
And it's not fraud for an employer to arbitrarily control pay based on someones location? Is their revenue similarly confined by that employees contributions because of location?
If company can pick arbitrary locations around the world to be their HQ, or Trump can use Mar-a-Lago as his residence, then so too can every other citizen following the law and paying their taxes.
One is legal the other isn't.... This isn't hard you would be committing fraud no questions. Also depending on how you've lied you'd also be on the hook for tax issues to the government rather then just and issue with your company.
No, it's not tax fraud. Tax is between you and the government, not you and your employer. The U.S. even allows you to ask your employer not to deduct tax so you can deal with it personally.
If you follow whatever local and state laws apply to your situation, you're perfectly in your right.
People do that with car insurance and jobs with residency requirements.
I used to drink with a bunch of fireman who lived about 300 miles away - they had to live in the city or adjacent county. They’d have a flophouse in the hood shared by like 20 guys and crash there once in awhile when they pulled overtime as well as get mail.
Travel scams are similar too. If a company will reimburse travel if you’re 50 miles from home, people will “move” so they can bill the mileage tolls.
It works great until it doesn’t. If you want to give up your cushy Google gig for a few thousand bucks, good luck.
Well for starters you're gonna have all applicable state and local taxes withheld from wherever you're fraudulently claiming to be living, as that is going to be where you are ACTUALLY living as far as all relevant taxation authorities are concerned.
I think a more non-fraud tactic would be to find the cheapest area in a high cost of living area and minmax on that dimension. Especially if it’s by county, then there are likely unfavorable areas within that county.
But if there is anywhere in the county that has escaped full IT gentrification because of poor commuter access, those prices are going to explode if they haven't already. Since median house price is a huge fraction of CoL calculations (and a frequent complaint among some economists), staying in county gets you a raise, if your friends do it too.
Yeah, last time I looked at rents in my hometown, the cheapest options there were comparable to the cheapest options in San Francisco. They're probably a bit ahead of the curve; most the empty land around is either federal or LADWP, so there's limited room for new development, but it's a major shot up from pre-pandemic prices where renting a full house was cheaper than an SF bedroom.
Not at Google. When you go remote you're paid based the same as if you were onsite at the nearest office to your residence, limits are roughly CSA (combined statistical area) in the US—not cost of living.
It's slightly more true that it's based on the local cost of labor, but even more so that it's just based on the state, with carveouts for MSAs (which are defined based on county) surrounding certain offices commanding higher salaries.
You'd make just as much working remotely in Matamoras, PA as you would working out of the NYC office in Manhattan.