Understand your salary and employee benefits

Understand your salary and employee benefits1Compare different offersCompare base salary with cost of livinghttp://www.areavibes.com/cost-of-living-calculator/Example: compare Los Angeles, CA and Atlanta, GAAtlanta is 22.3% less expensive than Los AngelesMedian house price: $350,000 (CA)/ $140,000 (GA)$50,000 in Los Angeles, CA = $38,857 in Atlanta, GA

Los Angeles, CAAtlanta, GAOverall index12799-22.3%Groceries1061060.3%Housing17689-49.4%Utilities11296-14.2%Transportation106102-3.6%Healthcare110101-8.2%Goods & Services1031040.4%2Example of W-2 Statement

Tax return 1 is used for 1040

1040-gross income (wages, tip, compensation)

W4 determines (with hold) the tax with held from income (estimate) before you actually file your taxes and find out the real number. Let them with hold more= smaller check, but bigger returnIf they take less from your check, you could potentially need to owe them

Social security wages, pay roll benefit, pay for people retired now

3Understand your W-2 statement?Wages vs. Social Security wages vs. Medicare wagesAdjustments to YTD gross pay for Federal and State wagesSubtract before-tax deductionsMedical/dental/vision/FSA Health/FSA Dependent care/401k/403b/457 plansAdd Employer paid taxable fringe benefits (e.g., group term life insurance over $50,000)Adjustments to YTD gross pay for Social Security and Medicare wagesCannot subtract contributions to 401k/403b/457 plansMax. Social Security wage is $113,700

Gross pay will appear in 1

Deductions will not appear in gross pay4Tax withheldFederal income tax withheldUse W-4 to make adjustments to tax withheldWhen you file federal income tax return with 1040:If Tax>tax withheld, you pay the differenceIf Tax