(Closed) Hourly Wage and Benefits question!

posted 6 years ago in Career
Post # 3
Hostess
16213 posts
Honey Beekeeper

Yeah, your take-home pay won’t actually amount to the listed rate. ๐Ÿ™

Post # 4
Member
2065 posts
Buzzing bee
  • Wedding: December 2011

Sadly yes. The difference in my gross and take home is about $650 per check. Sigh.

Post # 5
Member
9029 posts
Buzzing Beekeeper
  • Wedding: June 2011

yes it will be $15 before tax and any other benefit deductions such as health insurance or 401k are taken out. But you get can tax deductions for certain things like medical etc.

 

Post # 6
Member
7431 posts
Busy Beekeeper
  • Wedding: October 2009

@Eva Peron:  yes, but that stuff comes out pre-tax, so it lowers your taxable income. So while it does lower your take home pay, it also lowers the amount that is taxed, saving you a bit on taxes.

Not a real “deal”, but at least a little bit of an incentive

Post # 7
Member
1333 posts
Bumble bee
  • Wedding: May 2014

@Eva Peron:  I will try ๐Ÿ™‚  It depends on how your company handles things, but for mine (and I am the HR Director), and I think for many, the following applies:

You get paid $15.00/hour.  That is your net wage.  Your gross pay is that minus taxes, benefits, etc, which yes, means your ‘take home’ pay is less.  However, our benefits are ‘pre-taxed’, which means that those come off your net wage, and then federal taxes are taken from what is remaining.  Which, means you are ‘taxed’ less bc it is showing a ‘lesser’ starting wage.  It helps put a bit more in your check per pay!!  401K is NOT pre-taxed, but that total deduction/year is claimed on your taxes, and it increases your return!!

Confusing?!  Yes.  Frustrating?!  absolutely!  Bc, for instance, if someone is making $50K per year (where I am from), they are only probably bringing home around $45K depending on what their withholdings are for their taxes!!

Post # 9
Member
1333 posts
Bumble bee
  • Wedding: May 2014

@Eva Peron:  PS:  This is why when interviewing for new ‘jobs’, which I have done once, I told them that my salary at my other job was about 3K more than what my net wage actually was!! I figured aim for more, so that I either make the same or higher with a new company ๐Ÿ™‚

Post # 12
Member
5668 posts
Bee Keeper

@OUgal0004:  I’d be careful lying about salary. If you get caught some companies will terminate you even after you’ve been hired on.

As PPs mentioned $15.00/hr is not going to be your takehome pay.

Post # 13
Hostess
18643 posts
Honey Beekeeper
  • Wedding: June 2009

Yes your benefits are taken out of your paycheck.  You usually can determine the insurance you want if there are options and the percentage you want to go to 401k.

Sorry delayed posting, everyone else says the same thing much better than me!

Post # 14
Member
1333 posts
Bumble bee
  • Wedding: May 2014

@Aure:  Thanks for the heads up, but I believe anyone is entitled to ask for a specific starting wage if they ask…perhaps I worded my last post wrong, but when asked what I was comfy with starting at, I went above my last salary.  Got the job, and all is fine!!

Post # 15
Member
5977 posts
Bee Keeper

@OUgal0004:  Actually, you have it reversed! Your gross is your pay before taxes and all of that other stuff is taken out. Your net is what’s leftover, or your take home pay! 

@Eva Peron:  Rather than inflating your current salary, it might be good to try to negotiate with your future employer to say, “Well, I currently get paid $XXX, but I don’t pay for benefits.” That way, they might consider giving you a sign on bonus to cover your benefits for the year or increase your starting salary offer just a bit. 

Post # 16
Member
3375 posts
Sugar bee
  • Wedding: October 2011

Yes. $900 leaves my paycheck every two weeks without me ever seeing it. It’s so sad. Basically it’s taxes, Social Security, Medical, Dental and 10% paycheck to my 401k.

The topic ‘Hourly Wage and Benefits question!’ is closed to new replies.

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