"Several Big Law firms treat nonequity lawyers as full partners for tax purposes. That means they saddle them with Medicare, Social Security and health levies the lawyers didn't face as associates."
"It was bad enough slapping a misleading title on lawyers to cover for the firm's unwillingness to share the wealth. But then to tax them as partners to increase the pot of gold for the equity team is downright dirty."
"In 2024, firms could save 7.65% of Social Security and Medicare taxes for K-1 partners... These savings would collectively top $2 million for a firm with about 140 nonequity partners."
"Aside from the increased tax burden, a greater cost for rising nonequity partners comes from having to fully subsidize their own health care. For a high-deductible family plan, this could mean an additional $14,400."
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