Labor income or household income

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Dcalamuci

• January 18, 2019 16:47

I am working on a study attempting to estimate the tax impact of increased worker income. Specifically, what are the tax impacts if a group of underpaid workers were compensated at the same rate as the rest of the "market." We've calculated an estimated wage gap between these two groups of workers. 

To get the best estimate of potential tax impacts, should I set up my activity as a "labor income change" or as a "household income change?"

 

Thank you. 

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• Official comment

  

  LHATT

  • January 18, 2019 19:33

  Hi,

  Labor Income Change is likely more appropriate. If the estimated new compensation is a fully-loaded compensation value, then this lines up best with Labor Income.  This article further defines the differences between a Labor Income Change and a Household Income Change Value: https://implanhelp.zendesk.com/hc/en-us/articles/360000506954-Types-of-Activities

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