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Salary-Company Contributions

Anand Prabhu
Ranch Hand

Joined: Dec 19, 2003
Posts: 299
I approached my manager for a salary revision and he definitely knows how not to give one. He has been giving different reasons and this time he came up with another one that I could not counter effectively as I did not have decent information. He rightly pointed out about the "hidden salary", that is the medicare , social security, state unemployment taxes, and the healthcare, 401k contributions (however tiny!), that the company is paying on behalf of employees. Now that comes to a significant amount for each employee. Doesn't the company get any tax benefits from the State/Federal governments?
Henry Wong
author
Sheriff

Joined: Sep 28, 2004
Posts: 18914
    
  40

Doesn't the company get any tax benefits from the State/Federal governments?


Yes... In fact, your salary, your computer, and even the chair you are sitting on counts. Companies pay taxes on the bottom line, so all costs are deducted first. (Okay, the computer is a special case. That has to be depreciated over a few years)

Henry
[ October 13, 2005: Message edited by: Henry Wong ]

Books: Java Threads, 3rd Edition, Jini in a Nutshell, and Java Gems (contributor)
Henry Wong
author
Sheriff

Joined: Sep 28, 2004
Posts: 18914
    
  40

And BTW, salary issues are not a game. If you are not satisfied with your salary, let your manager know why (which hopefully is based on performance and not personal issues). If your manager is giving you reasons, expect those reasons to be also based on you -- or on the whole company. A better answer would have been "times are tough, and no one in getting a raise at the moment". After all, don't everyone in your company have "hidden salary"?

Asking repeatedly, and getting generic answers, is not good for either side.

Henry
Anand Prabhu
Ranch Hand

Joined: Dec 19, 2003
Posts: 299
Originally posted by Henry Wong:
And BTW, salary issues are not a game. If you are not satisfied with your salary, let your manager know why (which hopefully is based on performance and not personal issues). If your manager is giving you reasons, expect those reasons to be also based on you -- or on the whole company. A better answer would have been "times are tough, and no one in getting a raise at the moment". After all, don't everyone in your company have "hidden salary"?

Asking repeatedly, and getting generic answers, is not good for either side.

Henry

It's the situation. Three years ago, on the day I joined the company which is a parts supplier to the Big 3 in Detroit, the company had just declared a disastrous quarter and was announcing cutbacks. My manager, who hired me at the time, told me to take a paycut on the original offer so as to stay under the radar. He offered to have it reviewed once the company turned the corner. From the annual reviews, my performance is not an issue. However, the company has still not come in the black and my manager is very hestitant to take it to the Senior level, because of some personal differences with the higher-ups. I also did not want to jump without trying my bit in my current company. But you are right, I can't go on haggling like this. After I complete my 3 years, I intend to make a final request and then start looking at other opportunities and move on.

Thanks for your input.
Mark Herschberg
Sheriff

Joined: Dec 04, 2000
Posts: 6037
That "hidden salary" is true for your whether or not you get a raise. The overhead costs go up slightly iwth your salary, but that should be taken into accunt as part of the salary. When I do budgeting, for example, I list salaries in an excel spread sheet Then I have some overhead factor (typically 20-25%) which is applied to all salaries. The idea of extra cost may come into noting that size of the raise (e.g. a $4k raise really costs the company $5k) but it isn't justification by itself for no raise.

--Mark
 
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subject: Salary-Company Contributions