Earlier quoted context omitted.
There’s plenty of virtual office / forwarding address services, but claiming you live at one when you don’t for a pay gain risks (1) fraud against your employer; and (2) tax fraud (if eg in a different city / state / country).
What’s the definition of where one lives? For example what if you wanted the NYC salary and you rented out a bunk bed for $50/month and traveled around the country while working remote? Cities definitely don’t have the resources to track you down and I’m not sure employers especially larger ones have any mechanisms in place to keep track. I’m not advocating for this just surprised it’s not more well known. Though I s…
What makes it more problematic is that it's not just tax offices that would be interested in finding out. The company you work at may also get in trouble with the tax office as they pay employment taxes too, so they are probably interested in the fact that you're deceiving them. If your manager suspects you're not being truthful and follows up with HR this could easily get you in trouble. As remote work becomes more popular, it becomes more likely that companies will pay attention to this.
Knowing all of that, I'd find it quite hard to justify playing these games. It just seems like asking for trouble, with a pretty good chance of getting it.