How do you calculate the monetary value of room and board as part of job compensation?

Answer 1

Standard is $110.00 per week of which no more than $50 per week is food. You need to remember though that room and board rates may be taxable unless you meet specific tests for non-taxable, which includes the following four questions.

Section 2. Board or lodging shall not be considered wages if the board or lodging is furnished to a worker for the convenience of the employing unit in accordance with the following requirements:

(1) The employing unit shall have a business reason for providing the board or lodging;

(2) The board or lodging shall be provided on the employing unit's business premises or in a location where the business of the employing unit is routinely conducted;

(3) For lodging, the worker shall be required to accept the lodging as a condition of employment with the employing unit; and

(4) For board, if more than half of an employing unit's workers are furnished meals for the convenience of the employing unit all meals furnished by the employing unit on the employing unit's premises to any other workers shall also be considered to have been furnished for the convenience of the employing unit.

For an example, if you work as a live-in nanny;your room and board is not taxable.