trying to choose
I actually have what might be considered a good problem, but still needhelp. I have two good offers. One is in state, but inanother city and pays about $13.10 an hour, compared to $12 at mycurrent job, plus benefits, which I don't currently have. Theother is across the country, which is appealing but pays $11 an hourand the cost of living is slightly higher than the other city or whereI am now, but I might get a raise sooner at this job, and it hasbenefits as well. They both are similiar jobs in the same field,but the the out of statejob seems more appealing. I am alsowaiting to hear back from several other phone interviews I had thisweek. My question is: I have an offer letter from both companies, but both are contract jobswith the governent, and require follow up work, such as testing andclearance checks. Should I sign and send both off, go through thetesting and if I get through both, choose which one I like best, andturn the other down, or should I tell them to let me wait a few moredays before deciding? #2: Where I am at now has a state sales tax only and no stateincome tax. The out of state job has a state income tax. Everything else being equal, is the tax burden - local, state andfederal- less with a state income tax state or sales tax state? #3: What is the dollar value of the health benfits, in otherwords, if I were to convert the health benefit to salary in dollars perhour, how much higher would it go up ( I say about 1 dollar an hour,but am probably wrong). I wouldn't do this myself, but it mighthelp me in my decision. If you can help me, that would be great, I want to do something today if possible. 1 - What do you mean by "contract" jobs? If the government is contracting with your employer, that is one thing. But if the government is contracting with you, I would be hesitant to sign both contracts and expect to get out of one. 2 - The tax burden depends on the tax rates. There are some web sites or articles that measure the tax burden by state that will help you determine which is better/worse. 3 - The value of the health benefits vary wildly. You could have a plan whose premiums don't cost much but has a $5,000/yr deductible/co-pay. You could have a very expensive plan that requires no out-of-pocket cost. The only thing you can do is ask each employer about their respective plan. Final note... If it were me, I would not relocate for a contract-driven job. Contracts come and go and get canceled. I would prefer not to be in a new city without a job and therefor just on principle alone would choose the more local job. Have you factored in the cost of moving? Is the employer paying for that or are you? You can also take that off your taxes so that can help. If the job is based on getting a government contract, where will you be when that contract ends? If you take the out of state job, do you want to be there down the road if this job ends? Talk to a tax guy about the tax issues and see what they say. As a general rule, benefits are worth about 30% of your base. These base salaries are really nearly the same so I' d say the benefits percentage are about the same. One may however offer a better plan than the other or you may pay in less for one than another etc. Keep in mind however that benefits can change and a great medical plan today can be an expensive one in January of 2008. If I were you, I' d stay put and take the $13.10 per hour job. It' s going to cost you to move, you' ll be adding a state income tax, and it' s almost impossible to quantify the value of one health insurance program over another because the types of coverage, deductibles, and a hundred other things can vary so widely. In a nutshell, taking the job that requires moving adds moving expense and inconvenience, also pays less, has higher taxes, and there' s no guarantee of a raise, other than it "might" happen. Sign the offer letter for $13.10 and stay put.
I apologize, but I guess I was not very clear with my first post. Both jobs would have me employed full time with the companies who havemulti-year contracts with the government that will last several moreyears at the minimum and who do other things as well. The instatejob is with the Interior Department and the other one is with anintelligence agency. So basically they are just a regular jobsthat are with companies that have government contracts. Hope that helps if anyone else can give me advice. To me, it makes no sense to relocate out of state for a job that pays less.... And you refer to a "sales tax state or an income tax state." Actually, most states have both taxes, and the income tax is usually going to be higher, as it' s not discretionary--e.g., at least with sales tax, if money gets tight, you stop buying stuff (except absolute necessities.) However, your income tax stays; some states have a flat rate, and some a graduated rate (you pay a higher % the more you make). So if you are living in a state with no income tax and have an offer over $2/hr more than the job for which you' d have to relocate, I' d stay in state and take the higher-paying job--if it were me, which it is not. With no disrespect intended, the nature of the contracts these employers have with the government doesn' t change my first opinion. I' d still stay put and take the better paying job. Anyway, isn' t "government intelligence" and oxymoron? | |
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