Hot answers tagged

78

From a long-term planning point of view, is the bump in salary worth not having a 401(k)? In this case, absolutely. At $30k/year, the 4% company match comes to about $1,200 per year. To get that you need to save $1,200 yourself, so your gross pay after retirement contributions is about $28,800. Now you have an offer making $48,000. If you take the new ...


77

If it was me, I would count the bonus lost. You need money to live, and they are not paying you so the answer is obvious: seek another job (or three). I'd have a chat with your manager about you stopping work and explaining that you are your family's sole source of income. How they react will dictate how you proceed. If they get all upset with you, ...


58

That's just his base salary for last year. Keep reading in the article: He also received $1.6 million worth of securit[ies]. Plus, he's probably earned plenty in salary, bonuses, and other compensation in previous years to more than keep up his lifestyle. He can also sell (relatively) small amounts of the stock he already owns to get millions in cash ...


48

A simple budget spreadsheet is fine for this. In one tab, track all your income: - take-home money from employment (use an online calculator to estimate if you only know your gross salary, but within a few months you'll have actual real data to work with) - money from interest on savings - any other money you have coming in In another tab, work out your ...


47

Not paying your salary is a form is constructive dismissal. That is grounds for filing an unemployment claim — possibly the fastest way to get money for paying bills that doesn't put you into further debt. You can still sue to reclaim the wages owed to you, but that will take more time.


40

This seems like a risky setup. All it takes is one missed or delayed transfer for you to overdraw your "savings". There is a benefit to keeping your regular expenses and savings separate, and I can see some benefits in having multiple checking accounts depending on how you organize your finances, but I don't see a benefit to having a paycheck go to one ...


34

In my experience of doing software development for a little longer than I care to remember, salaries are always assumed to be negotiable. I know you said you don't like haggling (a lot of people don't) but you'll have to get used to that and you might have to be a little more flexible. Being able to negotiate something as important as your salary is a very ...


34

I disagree with the selected answer. There's no one rule of thumb and certainly not simple ones like "20 cents of every dollar if you're 35". You've made a good start by making a budget of your expected expenses. If you read the Mr. Money Mustache blogpost titled The Shockingly Simple Math Behind Early Retirement, you will understand that it is usually a ...


32

First off, for any questions relating to taxation in Sweden, it's a good idea to contact Skatteverket (the Swedish tax agency). The people there are generally happy to help, and also generally want you to get the paperwork right because it saves everyone a lot of trouble. They will also be more familiar with the details than the average random person on the ...


31

If you have children in a university institution, then your annual salary is reported via financial aid forms. The small raise could be the difference between full tuition covered and only half tuition covered.


31

4% of 30k ($1,200) is dwarfed by an $18,000 base pay increase. At 48k maxing out IRA will take ~11.5% of gross income, so at current position (30k salary) 401k contributions would likely be limited to the matching portion anyway. The long-term benefit of a deferred tax retirement plan can't fully be known since tax rates can change over time. If rates ...


31

My fear is if I resign I will not get paid my salary or my bonus. You will almost certainly get paid your salary up through the time you stop working. You might need to have a lawyer fetch it for you, but that salary is yours. They must pay it unless they prove something serious like you didn't come into work for that period. Before trying a lawyer, see ...


27

No, absolutely not. Income tax rates are marginal. The tax bracket's higher tax rate only applies to extra dollars over the threshold, not to dollars below it. The normal income tax does not have any cliffs where one extra dollar of income will cost more than one dollar in extra taxes. Moreover, you are ignoring the personal exemption and standard ...


27

You should ask your employer to issue an updated payslip showing the correct gross salary, deductions and net salary, and then repay to the employer the difference between the net salary in your old (wrong) pay slip and the new (correct) one. You should also get them to confirm that they have corrected any information they sent HMRC. At the end of the tax ...


26

Vicky provided a great answer and I agree that a spreadsheet is good for budgeting, some of the budgeting apps available make it easier to track spending or resolve deficits/overages in your budget, but none of them are perfect. Having to look at your monthly spending when entering it into your budget can help you be more aware of what you are spending on. ...


26

I think there are a couple of budgeting tools that have served me very well. Consider the big picture Think about money in terms of years, not paychecks. Netflix isn't just $12 per month, just one latte per paycheck; it's $144 per year. Your rent is $15,000 per year. A Mercedes lease is $7,000 per year. Etc. Make the numbers in your head bigger not ...


25

First, let's look at the tax brackets for single taxpayers in 2016: Single Taxable Income Tax Rate $0—$9,275 10% $9,276—$37,650 $927.50 plus 15% of the amount over $9,275 $37,651—$91,150 $5,183.75 plus 25% of the amount over $37,650 $91,151—$190,150 $18,558.75 plus 28% of the amount over $91,150 $190,151—$ 413,350 $46,278.75 plus ...


23

I am pretty sure you could find a number of financial planners whom you could pay to give you a very accurate number, but the rule of thumb I like best is Save a dime of every dollar. 10% (Savings means save for retirement, not vacations.) Here is a nice article from radio personality Clark Howard with some adjustments based on your age: Saving for ...


22

Rich people use debt for various reasons. The question should not assume that billionaires don't use debt. They also pay lower interest rates on that debt because they have enough collateral that their debt is safer than a typical mortgage. Many rich people will use interest only mortgages on their primary residences so that they can keep their stock ...


21

Here in Germany there is a special case. I am studying (and working a little on the side) and still receiving child benefits from the state which is like 190€/m. Because I am getting this I don't have to pay tuition which is 1k/y. If my side income would get over the boundary (which is like 9k/y) I would lose those benefits (~3.3k) and would have to pay ...


21

Yes. I have personally signed such contracts (fixed budget software development) and lost money every single time. And yes, it is quite possible for you to get paid under minimum wage if you take too long. Scope creep is the primary culprit for these kinds of contracts, so make sure you put together iron-clad explanations of what is and is not covered by ...


21

When you work for a company, there are a lot of expectations of you: prompt attendance, follow instructions, accept criticism, handle all the work stress, and all the things that go with good performance and a job well done. In turn, the company has one obligation: to PAY YOU. On time, in full, every payday. What you are describing is not a job. They are ...


18

You should alert the NY State Department of Labor here. Failure to pay salary is unlawful. I have to warn you, most people's experience is that they never get paid anything. In California, employee back wages are a preferred item in corporate bankruptcy. No idea about New York.


17

Social Security tax only applies to the first $118,500 you earn in a year. See the Social Security Administration's website for more info. You should see a 6.2% increase in after tax earnings now. If you switch employers mid-year, they will start withholding social security again.


15

A month is not four weeks, so your fortnightly pay is not half of your monthly pay. There are twelve months in a year but there are 52.18 weeks (allowing for leap years but not for the fact that 1900 and 2100 are not leap years). So your fortnightly pay should be (2 * 12/52.18) of your monthly pay, which would be $1362.44. In fact they've been slightly ...


15

The answer depends on this: If you had to hire someone to do what you are doing in the S-corp, what would you pay them? If you are doing semi-unskilled work part-time, then $20k might be reasonable. If you are a professional working full time, it's too low. Don't forget that, in addition to "billable" work, you are also doing office tasks, such as ...


15

In Singapore, this is sufficiently common that the Singapore IRS has a page on their website dedicated to informing employers of how to properly pay this under Responsibilites of an Employer. Specifically, tax paid by employer is taxable income for the employee (as it's really the employee's responsibility), so they must pay tax for that tax. A tax-on-...


14

The math in your question (and their "formula", to be honest) is complicating something rather simple: Are you paid $300 for two weeks' work or $300 for 1/2 months' work? You don't need to know how many fractions of a paycheck you get per month, or anything else. (In fact, that first bullet point of your top section essentially creates a loop that would ...


14

I actually think your boss is creating a problem for you. Of course it's taxable. The things IRS will look at (and they very well might, as it does stand out) what kind of payment is that. Why did it not go through payroll? The company may be at risk here for avoiding FICA/FUTA/workers' compensation insurance/State payroll taxes. Some are mandatory, and ...


14

No. Even if you don't need the additional salary income now, you might be able to contribute the incremental amount over the Roth max to either of the other two types of IRAs, or maybe even something else. You never want to take a lower salary, especially not in exchange for something that is conditional e.g. benefits. Your salary is the only thing that is ...


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