Company was acquired - losing benefits and company is attempting a true-up in salary to make up for it. Is it unreasonable to expect the true-up to account for my federal and state income taxes I’ll now have to pay on the incremental salary? For example, let’s say I’m losing $2k in annual reimbursements for phone and internet. This is a reimbursement so it’s tax free. My state and federal tax rate is a combined 37% so I would ask for $2739 to account for the taxes I’ll pay on that

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I would tread carefully but I don’t think it’s unreasonable.

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I think the argument makes sense, but I’d check the actual tax burden on that 2k and where it falls relative to existing tax liability and tax brackets

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It’s incremental salary so it will be taxed at my full burden, no? If I’m in the 32% bracket I’m not actually paying 32% of my total income, but I will be paying 32% of every new dollar earned

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Are you now at Guidehouse?

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Drop this line of inquiry and go talk to a CPA. If you’re paying a full 37% of taxes, then you have much bigger fish to fry than this $2k

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Of course I’m not paying that as my effective tax rate. I am paying that on any incremental income though. There is a difference between the two.

Yeah but you would need to ask for $3,174.60 to make yourself whole.

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