Chapter 2 Understanding Your Paycheck
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Step 6: For job off er number two, determine the total annual job expenses.
Multiply the monthly parking charges by 12 (the number of months in one year).
total annual job expenses = monthly parking charges × 12
total annual job expenses = $25 × 12
total annual job expenses = $300
Step 7: For job off er number two, determine the net annual job value. Add the
annual gross pay to the total annual employee benefi ts. Then, subtract the total
annual job expenses.
net annual value of job = annual gross pay + total annual employee benefi ts –
job expenses
net annual value of job = $48,660 + $780 – $300
net annual value of job = $49,140
Step 8: Compare the annual value of job number one to the annual value of job
number two to determine which is greater.
annual value of job number one = $51,860
annual value of job number two = $49,140
$51,860 $49,140
annual value of job number one annual value of job number two
Job number one has a higher annual value than job number two.
Check It
Samir currently has a job as an emergency management director in Beeville.
He earns an annual base salary of $62,180 along with a monthly cell phone
allowance of $22 and a monthly travel allowance of $65. He has been off ered
a job as the emergency management director in Alicetown. It has an annual
base salary of $63,700, a monthly cell phone allowance of $20, a monthly travel
allowance of $60, and monthly parking charges of $35. Which job has the higher
annual value?
A job may have value beyond its monetary value. If the job allows you to
work in an industry that you love, that adds value. If you would be working with
great people, that could add value to a job. Other things that could add value are
opportunity for advancement or job security.
On the other hand, a job might have negatives that lower the value of the
job. For example, your supervisor could be diffi cult to work with. A company
having fi nancial problems could also aff ect the value of your job.
Some employees choose to work for less pay or fewer benefi ts. They choose
jobs that off er values that outweigh money. For example, the job may require
fewer hours of work or provide for a fl exible schedule.