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Rental Subsidies for Employees

I've noticed a few start-ups that offer or did offer rental subsidies for employees who live near the office.

How does this work from an accounting / legal standpoint?

( 1 comment | on HN )
Re:Rental Subsidies for Employees by Codhisattva on Tuesday August 21, 2012 @10:42PM (#4415812)
I saw that too and figured it could be expensed by the company (similar to how a contractor can get per diem).