4 ms·

What you're saying is impossible. Prospective employers don't know what your exact after-tax income is as it depends on a lot of factors (dependents, marital st

by ulfw 6y ago

What you're saying is impossible. Prospective employers don't know what your exact after-tax income is as it depends on a lot of factors (dependents, marital status, etc)

senko 6y ago
As an employer in an EU country (Croatia), I know exactly how much each of my employees' after tax income is, including everything you've said (and adding stuff like some debt payments if there are any, etc). It's all withheld by employer - employee never sees a penny out of it. Although they always get full documentation of exactly what's wihhheld, in my experience almost nobody ever reads it. Note that there are some adjustments employees can make a return for at the end of the year, which takes into accounts stuff like dividend income, tax deduction on mortgages and similar.
- andrewingram 6y ago
  Note the comment you're replying to said "prospective employers". Until you're entered into the payroll system, your employer likely won't know what all the applicable deductions are, so can't give you a net income figure as part of an offer, just a pre-deductions figure.
  - senko 6y ago
    Good catch, thanks for pointing it out. The way this works here in practice is the employer assumes "standard" level of taxes based on your location. So for example, you'd negotiate €2k net salary, and you'd get a some € extra if you have a dependant, mortgage, etc.
- ericmay 6y ago
  Yea but you don’t know that before you hire them (or at least that’s the case in America). Here you might live in a different township or city, taxes will be different depending on school district, etc. AFTER you hire them, sure, you will probably know what their tax rate is. I think originally the discussion was about before you hire someone.
- Hamuko 6y ago
  >I know exactly how much each of my employees' after tax income is >Note that there are some adjustments employees can make a return for at the end of the year So you don't know "exactly" how much your employees' after tax income is. You just know how much you are withholding and have some kind of an estimate of what they make after taxes.
- pkaye 6y ago
  In the US, the employer withholds taxes based on filing status. Like if you are single or married, have kids, spouse is also working, second job. There is a short form called W4 that the employee fills out to help determine this.
alkonaut 6y ago
> dependents, marital status, Is this common outside the US? I thought this co-taxation thing was becoming less and less common. I have only ever been taxed as an individual.
oblio 6y ago
It depends on the country. In Romania salaries are taxed at the source (employer), the tax rate is flat and there are 0 deductions that I know of. So the employers knows for sure what the employee makes in 99% of cases. That's why salary negotiation is on net salary.

by ulfw 6y ago

What you're saying is impossible. Prospective employers don't know what your exact after-tax income is as it depends on a lot of factors (dependents, marital status, etc)

senko 6y ago

As an employer in an EU country (Croatia), I know exactly how much each of my employees' after tax income is, including everything you've said (and adding stuff like some debt payments if there are any, etc). It's all withheld by employer - employee never sees a penny out of it. Although they always get full documentation of exactly what's wihhheld, in my experience almost nobody ever reads it. Note that there are some adjustments employees can make a return for at the end of the year, which takes into accounts stuff like dividend income, tax deduction on mortgages and similar.

andrewingram 6y ago
Note the comment you're replying to said "prospective employers". Until you're entered into the payroll system, your employer likely won't know what all the applicable deductions are, so can't give you a net income figure as part of an offer, just a pre-deductions figure.
- senko 6y ago
  Good catch, thanks for pointing it out. The way this works here in practice is the employer assumes "standard" level of taxes based on your location. So for example, you'd negotiate €2k net salary, and you'd get a some € extra if you have a dependant, mortgage, etc.
ericmay 6y ago
Yea but you don’t know that before you hire them (or at least that’s the case in America). Here you might live in a different township or city, taxes will be different depending on school district, etc. AFTER you hire them, sure, you will probably know what their tax rate is. I think originally the discussion was about before you hire someone.
Hamuko 6y ago
>I know exactly how much each of my employees' after tax income is >Note that there are some adjustments employees can make a return for at the end of the year So you don't know "exactly" how much your employees' after tax income is. You just know how much you are withholding and have some kind of an estimate of what they make after taxes.
pkaye 6y ago
In the US, the employer withholds taxes based on filing status. Like if you are single or married, have kids, spouse is also working, second job. There is a short form called W4 that the employee fills out to help determine this.

alkonaut 6y ago

> dependents, marital status, Is this common outside the US? I thought this co-taxation thing was becoming less and less common. I have only ever been taxed as an individual.

oblio 6y ago

It depends on the country. In Romania salaries are taxed at the source (employer), the tax rate is flat and there are 0 deductions that I know of. So the employers knows for sure what the employee makes in 99% of cases. That's why salary negotiation is on net salary.