How do the current BDO partners feel about being W-2 salaried employees now?

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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

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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.

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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.

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Where did anyone say they don’t have any equity? Why do you think it is a “rumor” that they get a W-2?

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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.

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