vacation accrual
Total Income including Job benefits?
Hi
I recently got a full time job in U.S.A. I am getting 55,000 US Dollars and following job benefits
1. Medical, Dental,Vision and life Insurance
2. short term disability insurance (except for medical, eligibility begins on first day of month following date of hire)
3. 401(k) Retirement Plan (eligibility begins during the first quarterly open enrollment period following a 90 day waiting period)
4. Nine (9) Paid Holidays per year
5. Two weeks Paid Vacations (accrual begins on first day of employment, earned ratably per pay period)
so my total salary is
$55,000 + (cost of benefits if I pay for them myself instead of my company)
Can you give me an estimate of my total salary? Is it greater than $60,000 or $70,000 after including these benefits?
Please seriuos reply only.
Your taxable income will be your cash compensation plus the cost of life insurance for coverage that exceeds $50,000. From that, subtract your 401(k) contributions and any pre-tax premiums that you pay for health, dental and vision insurance.
You should pay the disability premiums yourself. That way if you have a claim the proceeds will be tax free. If your employer pays the premium, any benefits will be fully taxable.
Paid holidays and vacation have no tax implications. They are not “additional” income.
Speaking from the US societal position, your salary is your cash compensation only. We don’t add the value of fringe benefits and those are not taken into consideration for such financial decisions such as credit, etc.
AFSCME 1723 President Paul Dannenfelser explains new vacation Accrual System
