 |
|
|
|
Graduation brings with it big changes. Whether you plan to join the workforce or head to graduate school, these pages will help you transition to life after Clark.
|
|
 |
Income and Benefits
Income and Benefits | Budgeting | Debt | Apartments | Relocating | Resources
When comparing job offers, consider factors in addition to salary such as
opportunities for advancement, level of responsibility, skills you will learn,
contacts you will make, and exposure to a variety of clients. Sometimes it is
smarter in the long-run to take a job with slightly lower pay because it will
serve as a better starting point for your future career.
Gross vs. Net Income. First, the bad news:
more than 1/3 of your gross income will go to taxes and insurance so your
take-home pay will be significantly less than your initial salary would
indicate. When determining your tax withholdings, at first it is best to have
more money deducted from your paycheck than not enough. If you are single with
no children, claim zero dependents on the withholding forms your employer has
you complete. This won't change the amount of tax you pay but it will increase
your chances of getting some money back in the form of a tax refund at the end
of the year (as opposed to having to make a tax payment when you have no funds
to do that).
Retirement Plans. Most companies offer something
like a 401K plan that allows you to put pre-tax (gross income) dollars into an
investment fund managed by the company. In many cases employers will match your
contribution. If this is available to you, begin contributing as soon as you
can. You probably won't miss the money that is taken out, but it will grow to a
substantial amount over the years. If you change jobs you can take your
retirement money with you. If your employer doesn't offer a 401K plan you can
set up an Individual Retirement Account (IRA) to which you may contribute up to
$2000 pre-tax each year.
Savings Plans. Likewise, if your employer offers
automatic withdrawal into a savings account or credit union, commit to having as
much as you can afford taken out of your check and put into savings each pay
period.
Tuition Reimbursement. Many employers will pay
for all or part of your future study, particularly if it is related to the
business of the company. In some cases they will require that you work for the
company for a certain length of time after completing a degree for which the
employer paid the tuition.
Flextime. The company may offer you the
opportunity to work varied hours rather than strictly 9 to 5 which may be
appealing now or in the future.
Employee Assistance Programs. Many employers
provide counseling resources to help employees address problems such as
substance abuse, relationship issues, legal problems, or anything that may
affect job performance.
Insurance. Employers will offer several insurance plans for which they pay a
certain percentage and the rest is deducted from your paycheck. You should
choose the insurance plan with the most comprehensive coverage for you. If it
costs a little more it will pay for itself if you use it once. Take advantage of
the benefits for regular check-ups and teeth cleanings. Investigate Health
Maintenance Organizations (HMOs) by talking to co-workers, neighbors, friends.
COBRA. The Consolidated Omnibus Budget
Reconciliation Act requires that if you leave a job for any reason (including
getting fired) your employer must allow you to continue your insurance coverage
under their health plan for up to 18 months. You will have to pay for it, but
employers may offer it to you at their cost. (If you are not yet employed, your
best bet is to try to remain on your parent's insurance, which is usually an
option until age 23. Or, if that is not possible, many large insurance companies
offer short-term transition insurance policies that cover you for one to six
months and can be renewed for an additional period.)
|
