Let’s say you make $240k annually If you assume that your employer is holding 1 week of salary on average, then they’re holding $4,600 for your money at any gi

Let’s say you make $240k annually If you assume that your employer is holding 1 week of salary on average, then they’re holding $4,600 for your money at any given time. Let’s assume an annual interest rate of 3%, which aligns with the IRS rate on overpayments. So your employer gives you an additional $138 per year because of your money that they’re holding in escrow. But actually it would be less: they would only need to pay you interest on the amount of your cheque that hits your bank account. The IRS isn’t asking for interest on the amount they withhold for tax. Why not just ask for a $300/year raise instead? You’ll get more money in the end.