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I assume they knew that would be the case before they the took the PE money and are not surprised by that development
EY1, sounds like what happened at EY, LLP back in 2020 when they changed our pay schedule from bi-monthly to bi-weekly. Reduced payroll cash outflow by 7% per pay period. Wasn’t really because of the move to Mercury, let’s be honest with ourselves for once
I think that most principals like it because of the tax simplification and not getting taxed on phantom income. I think that part of the restructuring was relatively uncontroversial.
ALL BDO employees receive EQUITY - get you facts straight before you spouse "rumors". So for the rest of you in PA you are the ones missing out.
Where did anyone say they don’t have any equity? Why do you think it is a “rumor” that they get a W-2?
I’m sure some of them don’t like it for tax purposes. Some others might find it much easier from a compliance standpoint. K-1’s vs W-2
What’s the downside for tax purposes?
Why are we even calling them partners? They are employees and that's it.
Oh whatever.. they are boneheads for all i care.
Awesome! My W-2 makes me feel tax wise how I’m treated operationally: middle manager at Cutthroat Inc.
Honestly I think it was great for some (former partners living in no/low tax states) and bad for others (younger partners who could claim some QBI deduction cause they were under the threshold). 2023s return was ridiculously complicated. This year I think my 10 year old could do it on turbo tax.
Ha - I have my reasons.
I was at another firm that had W-2 partners but we also got K-1s. Very complicated but the benefits of the W-2 definitely outweighed the K-1 crap you have to deal with. As long as the profits are still paid out, I get a better deal on insurance and other benefits, and I get the protections of being an employee.