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In the US, salaries are not usually described including tax, are they? When someone in the US says they make $100,000 per year, that is usually exclusive of an
by Digory 7y ago
In the US, salaries are not usually described including tax, are they?
When someone in the US says they make $100,000 per year, that is usually exclusive of any tax paid by the company. It is also exclusive of other benefits paid, with health insurance commonly being $10-20k paid by the company, if provided. The employee is responsible for their own income tax.
There’s confusion because in the gig/entrepreneur/consultant world, people will say they “make” $200,000 in business income. But then they bear taxes and benefits out of that amount. So you may “make” more, but do worse than someone who is an employee of a bigger company. That is why it takes a substantial increase in income in the US to justify leaving a stable employer.