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20k increase is very significant (unless you are making 500k). That extra $300/month is a car payment, so if you can save that (and more), you can be that much better off in a year or two.
You didn't read the OP. If he lives in the same place, the only difference is the commuting costs.
OP, take the job. It is a no brainer. It's $20K more. That's more towards your retirement and SS when you get older. As for taxes, I don't think you owe NYC because you are not a resident.
Lol, you are funny, I used to work in NY, It's commuting costs and taxes, and NYC is more expensive if you ever plan on eating lunch. NY tax is like 1% more then you would pay in NJ, commute costs (my commute costs are under $200 a month). $7-10 spending on lunch a day, another $3-5 is coffee... In NJ, Lunch is like $5-$6.
20000k/12 month *0.75 left after Witholdings it is $1250 a month more to cover above listed expenses.
When I was working in NYC I would set my alarm to 8:15 and get home just after 6. Now I set my alarm clock to 9 am and I am home just after 6.
I used to take the bus to Manhattan, but after a few years I started to dread the bus so I moved close to a train-station (It's in walking distance from me).
But like I said, I am making $105 now close to home and I could make $120 in Manhattan, but I am just to comfortable here to job hunt. Yes, It's about 1k in extra state taxes when you compare NJ to NYC. Because I live by a train station, my 38 min ride to NYC costs like $148 for a monthly pass. Since as I got older my stomach got more sensitive, I bring my own lunch and don't trust the food they sell me in NYC. SO maybe an extra $1 a day (coffee in NYC costs more then here
Anyways the numbers are above.
I have friends that would never work in NYC, they hate it and they will not tolerate NYC's gay scene, while my mom would love to work in NYC the last couple of her pre-retirment years.
Buses do run late, The President comes to NYC, I am getting to to work after 11 am, expect the bus to be significantly late at least once a week (due to traffics).
There is no Right or work, it's how it works for you.
Depending on what your pay is now, I'd take the position. $20k higher pay is at least an extra $1000/m even after accounting for any increase in taxes, healthcare etc. PATH will cost say $100/m, lunch an extra $100/m. You still got a long way to go before the pay bump is not worth the extra costs.
Besides the additional networking and social opportunities in Manhattan, you want to be constantly raising the bar in terms of pay because compensation at your next job (and raises for your current job!) will be in part based on what you get paid currently.
A 5% annual raise at the end of 2yrs for $100k vs $120k salary results in salaries of $110.3k vs $132.3k = $22k difference, or $2k more than the $20k difference you started out with. Now compound this for years and years, and not just raises at the same company, but pay increases you get when you move to a new job, the difference is not insignificant...
If it were me and all other things (besides pay and commute) btwn the 2 positions were equal, I'd go for the raise and be thankful it doesn't require me to move or spend that much more in commuting costs or time.
Now if you're already making $250k/yr and love your current employer, colleagues, manager, etc., that would be a different story...
Depending on what your pay is now, I'd take the position. $20k higher pay is at least an extra $1000/m even after accounting for any increase in taxes, healthcare etc. PATH will cost say $100/m, lunch an extra $100/m. You still got a long way to go before the pay bump is not worth the extra costs.
Quote:
Originally Posted by DPolo
Lol, you are funny, I used to work in NY, It's commuting costs and taxes, and NYC is more expensive if you ever plan on eating lunch. NY tax is like 1% more then you would pay in NJ, commute costs (my commute costs are under $200 a month). $7-10 spending on lunch a day, another $3-5 is coffee... In NJ, Lunch is like $5-$6.
Gosh, who considers turning down $20K over lunch? You should be bringing your lunch daily anyway. $7 / day in lunch is a huge waste of money.
Quote:
Originally Posted by jpf723
Besides the additional networking and social opportunities in Manhattan, you want to be constantly raising the bar in terms of pay because compensation at your next job (and raises for your current job!) will be in part based on what you get paid currently.
A 5% annual raise at the end of 2yrs for $100k vs $120k salary results in salaries of $110.3k vs $132.3k = $22k difference, or $2k more than the $20k difference you started out with. Now compound this for years and years, and not just raises at the same company, but pay increases you get when you move to a new job, the difference is not insignificant...
This. There is simply no replacement for income and networking potential.
Quote:
Originally Posted by DPolo
But like I said, I am making $105 now close to home and I could make $120 in Manhattan, but I am just to comfortable here to job hunt. Yes, It's about 1k in extra state taxes when you compare NJ to NYC. Because I live by a train station, my 38 min ride to NYC costs like $148 for a monthly pass. Since as I got older my stomach got more sensitive, I bring my own lunch and don't trust the food they sell me in NYC. SO maybe an extra $1 a day (coffee in NYC costs more then here
If one is at the stage where additional income isn't needed, then of course stay in the comfort zone. If one desires more money, it is a no brainer. The OP comes out ahead income wise by taking the job.
On paper the simple numbers look significant enough to not warrant a discussion - a 20,000 raise on current NJ salary
However - if you add in NY witholding + Medicare rate tax + commuter and food the NET Pay is much less than 20k bump in salary
Per my calculations of above 1 allowance I would be making $474 more per paycheck (biweekly) than my NJ salary -- despite the 20k raise -- than subtract 1200 for commuting and lunch..
But still in the end - I will be working in Manhattan a dream company.. may have some doors of opportunity where none exist here.. I am so torn!!
On paper the simple numbers look significant enough to not warrant a discussion - a 20,000 raise on current NJ salary
However - if you add in NY witholding + Medicare rate tax + commuter and food the NET Pay is much less than 20k bump in salary
Per my calculations of above 1 allowance I would be making $474 more per paycheck (biweekly) than my NJ salary -- despite the 20k raise -- than subtract 1200 for commuting and lunch..
But still in the end - I will be working in Manhattan a dream company.. may have some doors of opportunity where none exist here.. I am so torn!!
Not sure what you're still torn about. By your calculations you'll be making $474 x 2 = $948/mo more, while only spending $100/mo more for commuting/lunch. Seems like a no brainer to me unless your current job, colleagues and manager are that much more incredible than what you'd have at the new position...
On paper the simple numbers look significant enough to not warrant a discussion - a 20,000 raise on current NJ salary
However - if you add in NY witholding + Medicare rate tax + commuter and food the NET Pay is much less than 20k bump in salary
Per my calculations of above 1 allowance I would be making $474 more per paycheck (biweekly) than my NJ salary -- despite the 20k raise -- than subtract 1200 for commuting and lunch..
But still in the end - I will be working in Manhattan a dream company.. may have some doors of opportunity where none exist here.. I am so torn!!
Yeah, but this phenomenon is true for EVERYONE, because EVERYONE pays taxes. A $50,000 salary is not $50,000 in your pocket. It's really $30-something-k after taxes. This is true in NJ, NY, and everywhere else.
A $20k raise in NJ would also amount to "much less than" a 20k bump in salary, same as in NYC. You would not be paying that much more taxes for working in NYC.
And NO ONE gets, or gives, $20k raises. Like I said, the average merit raise (and merit raises, obviously, are not guaranteed), is 5%. You'd have to be making $400,000 and earn a 5% merit raise, in order to get a $20,000 raise.
I'm gonna assume you are not making $400,000. So the fact that you are being offered a $20k salary bump is a good deal, to put it mildly. The only way to get that kind of raise, is to switch jobs.
The only reason to stay with an employer is if they offer a good pension.
And as already stated, grabbing this salary bump will give you leverage to negotiate a higher salary down the line.
Gosh, who considers turning down $20K over lunch? You should be bringing your lunch daily anyway. $7 / day in lunch is a huge waste of money.
Yeah. I so agree with this. Even if you do NOT bring your lunch daily, I wouldn't turn down an extra $20k a year because buying lunch in NYC is supposedly $2-$5 more than buying lunch in NJ.
As far as the $3-$5 coffees in NYC? If you like to flush money down the toilet by buying $3-$5 coffees (when your office most likely provides it for free; or you can buy a $1 coffee from the food cart vendor dude, or from Dunkin Donuts, or from the deli)...that is your problem...has nothing to do with working in NYC vs. NJ. The froo froo brew costs $3-$5 in NJ too.
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