Questions Every Woman Should Ask Before Accepting a Higher-Paying Job Offer

Promotions, salary increases, and new jobs usually have a positive impact on our lives. However, switching jobs can bring many hidden expenses. Before you make a significant life decision, consider the unexpected costs, like taxes, health insurance, benefits, retirement, relocation, bonuses, raises, and lifestyle changes. Luckily, with careful planning, you can save your bank account from unnecessary expenses or poor financial choices.

Are you trying to determine whether accepting that new job offer will be a financially-savvy decision? Here are some questions to consider:

Will you be a salaried employee or an hourly contractor?

Salaried workers only get paid for 40 hours per week. Even when they work more hours, there’s no overtime pay.

However, if your job includes extra benefits, raises, and annual bonuses, those perks might make up for extended shifts. Although contractors are paid for every hour worked, they’re responsible for paying their own taxes each quarter, rather than filing annually. If you forget to file taxes frequently enough or fail to put back enough money to pay the IRS, you can expect to owe a large sum come tax season.

Will your tax bracket change?

Higher-paying jobs can increase your tax bracket, meaning the government keeps more of your income. According to finance writer, Dan Caplinger, “self-employment tax is usually roughly twice what you’d see if you were an employee.” To determine whether that’s worth it, consider your unique financial situation and remember that tax laws frequently change. This year, a new tax law decreased tax refunds for most American workers, especially freelancers and contractors. If you’re unsure of local regulations, ask an accountant before accepting any job offers. That way, you’ll feel more confident about your decision.

What will your net pay be?

Job descriptions, interviews, and paperwork typically report salaries as gross income, the amount you make before taxes. Your take-home pay after taxes, or your net income, will be less. Net pay depends on factors like your location and tax bracket. That shiny gross income amount may not be worthwhile if you ultimately make less money than you currently make. Before accepting the job, save yourself some headaches by asking an accountant.

Is the pay transparent?

These days, many companies are moving toward transparent payscale policies. However, transparency eliminates your ability to negotiate salaries, limits future raises, and can even reduce morale. Ensure your new pay is high enough to compensate for any downsides.

What’s the dress code?

Whether you’re changing industries or moving into a higher-level management position, you may need to budget for a new wardrobe. Luckily, there are many budget-friendly options when it comes to work attire. Rather than buying expensive, trendy items, opt for simple, timeless pieces that can be easily paired together without going out of style. Popular clothing stores like Ann Taylor Loft or New York & Company have great prices on business wear and frequently have sales; you can even combine sale items with online coupons to increase your savings.

With some savvy shopping, you can bump up your wardrobe without blowing your new paycheck.

Will you be happier?

Keep in mind your career isn’t just about the money. If that higher-paying job will stress you to the point of becoming ill, it might end up costing you more than your new salary is worth. Besides, extra benefits like free childcare, college tuition reimbursements, flexible schedules, hefty bonuses, and the ability to work from home can make up for lower salaries.

It’s okay to ask for a few days to think about a job offer. Any decent company will give you time to consider your options rather than rushing you into a decision. Sites like InHerSight or Fairygodboss let women compare company benefits and work environments at a glance. By comparing the pros and cons of your new job versus your current one, you’ll feel confident you’ve made the best possible decision for yourself, your bank account, and your long-term future.

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