Getting a job offer in this economy might prove harder than finding a good deal on iPad2, but should you accept any job offer? Not necessarily, regardless of your current situation, whether you have a job or not, you should consider any offer carefully to avoid any set back.
If you are some of the lucky member of society that currently hold a job, you have more flexibility in accepting an offer. However, an offer for a better position or better pay and benefit do not always translate to better life. There are some hidden options that most people would normally overlook in accepting an offer.
First, there’s an adjustment period. Most company will place their new hire in 3 months of trial period. During this time, the chance of getting fired is more significant than a permanent employee and you will also need to pay for your own health and other benefit since the new benefit doesn’t kick in until after 3 months
Second, the travel cost. With gas price that is not likely to go below $3.00 per gallon, gas cost could eat up a big chunk of the added salary if the new office is much further than your previous one.
Third, the tax rate. Most people would normally accept an offer if there’s a significant increase to their take home pay check. However, if you happened to be in the border line of a lower and higher tax bracket, the additional take home amount might not look enticing anymore. Let’s say your current taxable income is $ 75K, a job offer of $ 85K will not give you a $ 10K increase in your take home pay. According to the IRS guideline, the 2011 Federal tax rate for single filer who earned $ 34,500 – $ 83,600 is 25%. By accepting the offer of $ 85K, your tax rate will be 28%. This means that out of your taxable income of 85K, Uncle Sam will receive $ 23,800 in tax revenue while on your current 75K taxable income, your tax expense is $18,750. When you compare the additional tax you have to pay of $ 5,050, your actual annual salary increase is only $4,950
And lastly, your seniority. It might not means much but many companies offer an increase benefit in paid vacation time when you have been with them for a number of years. A week addition to your vacation time is usually equal to one week of salary increase.
Getting a job offer could be exciting and frightening at the same time, but with a careful thought, you could avoid any regrets in the future. And for some, getting the offer itself would give a meaningful impact and pride that they, for once more, can be a contributing member of society, and for that, there is no drawbacks.