If you are considering a job offer, listing the pros and cons can help you focus better. Sometimes it’s as simple as choosing the job that pays the highest salary, but it’s often more nuanced than that.

Increasingly, people are placing importance on lifestyle considerations when making job choices. While researching this article, I read a lot of “Best Benefits” lists. The top-ranked benefits include things like flexible work hours and remote work options – two practices that were quickly accepted during the coronavirus pandemic and are likely to stick around in many companies. Employees also like things like generous paid leave policies and parental leave policies.

Only you know which benefits are most important to you. But when considering a job posting, don’t forget about the kind of “old-fashioned” perks that you can place a monetary value on. Consider whether the job you are considering is light on some of the more traditional perks, discussed below. If so, think about the cost of replacing the benefit on your own, and then consider using that figure to negotiate a higher salary.

Does it offer health care benefits?

Value: ~ $ 5,000 / year (~ $ 14,000 of family coverage)

Traditionally, health care benefits have been one of the biggest incentives companies have had to offer American workers. This is really beneficial for both parties: Companies want their employees to be happy and healthy – of course! – but they also benefit from tax advantages. Employer-paid health insurance premiums are exempt from federal income and payroll taxes. In addition, the portion of bonuses paid by employees is generally excluded from taxable income. For these reasons, employer-sponsored insurance plans have always been the most affordable health insurance coverage option for most American families.

Companies typically don’t pay 100% of their employees’ health insurance, but they pay a significant portion of it: an average of 67%, according to the Bureau of Labor Statistics.

Health care has become more widely available and affordable since the dawn of the Affordable Care Act, but it remains expensive and should be included in a budget. In 2020, the average annual premiums were $ 7,470 for individual coverage and $ 21,342 for family coverage, according to the Kaiser Family Foundation.

Note: Many companies offer a choice of health care plans with different price points. A high deductible health care plan may be worth a visit if you are healthy enough and on a budget. HDHPs have cheaper premiums, but you have to pay a certain amount out of pocket before your insurance starts to cover the expenses. How? In 2021, a high deductible is at least $ 1,400 for an individual insurance plan and $ 2,800 for a family plan. Besides being economical, another advantage of HDHPs is that they allow you to save with a health savings account, which is a fairly neat type of account with excellent tax advantages. HSAs allow you to spend tax-efficient dollars on current healthcare costs and invest the balance for future healthcare costs. And it’s portable, which means you can take it with you if you decide to quit your job.

Is there a good retirement savings plan with employer matching?

Value: ~ 3% more of your salary, invested in the pension fund of your choice, each year. FREE MONEY WITH EXPONENTIAL GROWTH POTENTIAL!

One of the benefits some companies offer is a 401 (k) match. It’s even better when paired with a high quality 401 (k) with low administrative overhead that offers high quality investment options – see this article by Christine Benz on how to assess the quality of a 401 (k) plan and lobby for a better one, if necessary.

The exhibit below shows just how big a difference the game makes. The light blue line shows the growth of $ 100 invested in stocks at the end of each month. The dark blue line represents the same investment with a 50% match with the employer. (In other words, $ 150 invested each month instead of $ 100.) Since investment returns increase exponentially and not linearly, fund your retirement account with as much money as soon as possible. offers you the best growth potential.

Source: Morningstar Presentations, available in Morningstar Office.

Does it offer a flexible expense account for dependents?

Value: Tax savings of up to $ 10,500 in child care expenses

Check to see if the employer offers potential savings on child care, such as a flexible dependent expense account. It is a handy tool that can save you money.

A Dependent FSA allows you to set aside a maximum of $ 10,500 before tax that you can use to pay for preschool, summer day camp, or after-school care for children under 13 years old. (Tuition and fees associated with kindergarten or elementary school are not eligible.) Some employers may also contribute to a dependents’ ASP, but the combination of employee and employee contributions employer cannot exceed the maximum. (The maximum was previously $ 5,000, but it has been temporarily increased to $ 10,500 for 2021 due to the US bailout.)

Because you put the money aside before it’s subject to payroll taxes, you end up paying less in taxes and ultimately increasing your take-home pay. The higher your salary (and therefore the higher your tax bracket), the greater your FSA benefit.

Be aware, however, of a potential drawback of Dependent FSAs: Unlike HSAs, Dependents FSAs are not transferable and you must spend the entire balance by the end of the year or you lose it; you are not allowed to postpone it. (Some employers give a short grace period after the end of the year.) As such, this option only makes sense if you’re sure you’re spending at least the amount you put into the account each year.

Does it offer group disability insurance coverage?

Value: The average cost of a disability insurance policy is 1 to 3% of annual gross income

According to a study carried out by the Social security administration, about one in four 20-year-olds will become disabled and unable to work for at least a year before retirement age.

Have a plan in place in case this happens to you. A cost effective way to guard against this risk is group disability insurance coverage – if your employer offers it, make sure you subscribe to it and make sure you understand the coverage it offers – what percentage of your salary will it pay and for how long (up to a year).

Also, make sure you understand the tax implications, as they can be tricky: If your employer pays the premiums (or if you pay the premiums with pre-tax dollars), the disability income you receive will be taxable. This is important because if your short-term disability insurance policy only covers 60% of your pre-tax salary, be aware that the taxes owed will further reduce the benefit, so you may not have as much of your benefit. income replacement than you thought.

If you pay the premium with after-tax money, the income you receive will be tax-free.