Compensation and Employer Provided Housing

[UsedtobeCSO]

Minnesota

My husband and I work for a small non-profit in Minnesota. The non-profit provides our housing as a condition of employment. We are required to be on site and on call 24/7 for six months out of the year.

The employer values our housing at roughly 65% of our compensation package, and pays the remaining 35% to us as wages.

Of that 35%, 80% is paid to my husband as wages, and the remaining 20% is paid to me.

Questions are welcome, but I’m wondering
A. how the employer can calculate the value of employer required housing when doing wage calculations
B. what the minimum wage they must pay would be when including the housing costs.

Thanks in advance.

 

[adjusterjack]

I think the answers to your questions are on the following page of the US DOL website.

Credit towards Wages under Section 3(m) Questions and Answers | U.S. Department of Labor (dol.gov)

I haven't read through all that, I'll leave that to you.

If it doesn't answer your questions I suggest you call the US DOL or the MN DOL for an explanation of how employer provided housing works.

 

[LdiJ]

Minnesota

My husband and I work for a small non-profit in Minnesota. The non-profit provides our housing as a condition of employment. We are required to be on site and on call 24/7 for six months out of the year.

The employer values our housing at roughly 65% of our compensation package, and pays the remaining 35% to us as wages.

Of that 35%, 80% is paid to my husband as wages, and the remaining 20% is paid to me.

Questions are welcome, but I’m wondering
A. how the employer can calculate the value of employer required housing when doing wage calculations
B. what the minimum wage they must pay would be when including the housing costs.

Thanks in advance.

I don't know the actual numbers that you are dealing with, or the type of housing that you are receiving, but in general, claiming that housing costs represents 65% of your pay is high. In general, 35% housing costs would be more in line. Of course, I don't know what the housing costs include, so that might make a difference in my opinion.

Fair market rent usually what is used to calculate the value of employer provided housing. However, it is not uncommon for housing provided to someone who is required to live on site, to not be included in taxable compensation.