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93

As a contractor, I have done this exact calculation many times so I can compare full time employment offers when they come. The answer varies greatly depending on your situation, but here's how to calculate it: How much is your annual healthcare cost if you don't get it from your employer? A good place to start is healthcare.gov and look up plans that are ...


51

There are very specific rules that govern whether or not a person qualifies as a dependent of another. You can learn about them on this IRS tutorial about dependents. Based on what you've said in your question, I doubt she would be allowed to claim you as a dependent. Because you are a full time student you do meet the age test (under age 24), but you fail ...


28

Congratulations on your raise! Is my employer allowed to impose their own limit on my contributions that's different from the IRS limit? No. Is it something they can limit at will, or are they required to allow me to contribute up to the IRS limit? The employer cannot limit you, you can contribute up to the IRS limit. Your mistake is in thinking ...


22

If you have decided to do the degree, and are simply deciding whether to accept employer funding for it or not, take the funding. I see no difference between "my employer doesn't pay my tuition" and "my employer paid my tuition but I had to pay it back because I moved on". Therefore there is no downside to letting them pay the tuition. If you want to move on ...


15

I agree with the other answers that it is a benefit, but wanted to add another explanation for this: Also, why a company would prefer matching someone's contributions (and given him or her additional free money) instead of just offering a simple raise? In addition to a match being a benefit that is part of your total compensation, 401ks have special ...


15

During World War II, the United States (US) instituted wage and price controls. To attract better employees, companies would offer benefits to get around salary limits. Health insurance was one of the more successful benefits. At that time, income taxes were newer and there were many ways to evade them. Companies could generally deduct expenses. So at ...


13

US: This came up recently on The Consumerist - the rewards themselves are not taxable, however anything you receive as an incentive to open the account, e.g. X bonus miles, may be taxable, and if it exceeds a certain amount, a 1099 is issued.


12

IRA is not always an option. There are income limits for IRA, that leave many employees (those with the higher salaries, but not exactly the "riches") out of it. Same for Roth IRA, though the MAGI limits are much higher. Also, the contribution limits on IRA are less than a third of what they are on 401(k)s (5K vs 16.5K). Per IRS Publication 590 (page 12) ...


11

For all of littleadv's reasons, I suggest you set the bar far higher. e.g. I got a card offer that was 10% cash back for the first 90 days. I turned that into $5000 cash in rebates. A couple years back, a card offered a zero percent period of a year. I sent a $20000 check to my mortgage, saving $1000 over that year. Each credit inquiry is a small hit on ...


9

Assuming I pay them down completely, and then destroy the card or account, what's the catch? For you it is not so good because it will grow your credit report enormously. It will also affect the score: each new account opened, each new inquiry - reduce your score. The more of those and the more frequent they are - the deeper the dip. So the promoters ...


9

Highly Compensated Employee Rules Aim to Make 401k's Fair would be the piece that I suspect you are missing here. I remember hearing of this rule when I worked in the US and can understand why it exists. A key quote from the article: You wouldn't think the prospect of getting money from an employer would be nerve-wracking. But those jittery co-workers ...


9

Let me add another consideration to the company's side of the equation. Not only is a 401K a tool for the company to make them competitive when recruiting employees among other companies that offer that benefit, it is also a good retention tool. Most company's 401K plans include a vesting period of at least 3 years, sometimes more. An employee that leaves ...


9

The 401(k) plan must have a definition of "eligible employees". All eligible employees must be given the opportunity to participate in the plan. Talk to the 401(k) contact within your company, or the 3rd party Plan Administrator. Ask to see the plan documents. Learn how it defines "eligible employees" and find out if part-time employees are eligible or not, ...


8

That's almost certainly a confusingly-worded version of Company will match employee's contributions, up to 6% of employee's salary, at a 35% rate or similar, as you expect. The alternate reading doesn't make sense grammatically - "up to" is incorrect in that phrase (35% match of the first 6% of employee contribution would be okay, but "up to" doesn't ...


8

Tax exempt contributions made to an employer Section 125 Cafeteria plan are governed by the IRS. The IRS states that the election change may not be made during a plan year except for certain qualifying events. Off plan-year changes due to eligibility under a different employer plan, loss of eligibility under a different employer plan and open enrollment at ...


8

How will your employer treat your pay and benefits status while you're on leave? Disability income coverage and leave policies work in tandem to solve very different problems. Disability income coverage covers your income, leave policies guarantee your status as an employee. Typically, STD coverage requires an actual loss of income and will offset it'...


8

To be eligible for unemployment benefits in Wisconsin, you must have been employed in the base period, which is a year-long period prior to the date you apply for unemployment benefits. Since your grandfather has not been employed for the past 8 years, I don’t think he is eligible for unemployment benefits.


7

FYI: Per the Family Medical Leave Act on 1993 (FMLA) most companies in the US (except small ones) are REQUIRED to give you maternity leave. They are not required, however, to pay you. You should also be aware of this eligibility proviso if she intends to switch companies: Employees must have worked at that company for at least 12 months. They also must ...


7

Stated plainly... it's a benefit. Companies are not required to offer you any compensation above paying you minimum wage. But benefits attract higher quality employees. I think a big part of it is that it is the norm. Employees want it because of the tax benefits. Employees expect it because almost all reputable companies of any significant size offer it. ...


7

As others have said, it depends entirely on what benefits are provided, and how much of the cost of those benefits is paid by the employer and how much is paid by the employee, and compare that to what it would cost to obtain the necessary/equivalent coverage without employer assistance. In my case, my employer pays more than $10,000 per year toward the cost ...


7

Unfortunately, no. Transportation expenses between your home and your primary employment location are not normally deductible. An employer, however, is allowed to offer its employees transit passes; this fringe benefit is tax deductible for the employer and is not considered income for the employee, up to a monthly limit of $255 (for 2016). The employer ...


7

"can they "change the rules" after letting me have 401(k) for 2 years" Yes, yes they can. Employer benefit packages are at least reviewed and in fact usually revised each year.


6

You will want to do two things, and do them correctly: 1) You will want to roll over your existing 401K into a Rollover IRA. I would go with either Vanguard or Fidelity. While I have both, I like the website of Fidelity better. You can sign up for free accounts for both and see which one you like better. Some love Vanguard more. They will help you ...


6

Pete's suggestion to roll your money into an IRA is a good way to manage existing money, but you can only contribute an additional $5,500/year (2017 numbers -- $6,500 if you're over 50, but limited in how much you can make and still be eligible to deduct your contributions). $5,500 is much lower than the $18,000 limit for 401(k) contributions. California is ...


6

Note: I initially assumed that you were seeking a refund from your old insurance company, and my original answer is shown first. Below that, I have added a new section to address the clarification that you are seeking a refund from the new insurance company. Also, please understand that I am not necessarily an expert in health insurance, so my answer below ...


5

You could end up with nothing, yes. I imagine those that worked at Enron years ago if their 401(k) was all in company stock would have ended up with nothing to give an example here. However, more likely is for you to end up with less than you thought as you see other choices as being better that with the benefit of hindsight you wish you had made different ...


5

Your view is correct when talking about unrelated persons. However, in this case the renter and the landlord are related. In most countries, and I'm sure so is Canada, any benefit above certain (very low) minimum that the employer provides to the employee is considered part of the payment for services provided by the employee (aka salary). Thus, if the ...


5

Under "Pension contributions deducted from your pay" you need to put in the £ amount of the 5% that you pay from your salary. If your gross salary is £50k then you would put £2500 in that field. Under "Pension contributions not paid from your salary" you need to put in any additional amounts that you have paid into any pensions, eg by sending in a cheque or ...


5

In broad terms, Child Benefit is a universal benefit paid to anyone earning up to £50-60,000 a year* whilst Child Tax credit is primarily means tested (for no/low incomes really). Both are payable provided the young person is under 20 (not 18) and is in full time non advanced (up to "A level" standard) education or certain types of training. Child benefit ...


5

Yes, it should be included as taxable wages on your W2. While a gym at work (i.e.: on premises) is a non-taxable fringe benefit, when you're being provided an actual gym membership elsewhere - it is considered wages.


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