Monday, May 28, 2007

Tuition Reimbursement or lower salary?

I guess I should be more clear about DH's salary. In some ways he is making less because we are leaving guaranteed money on the table. Every year he gets $x, on his anniversary, then two annual bonuses which vest in July and February. So we are leaving right now $40k on the table, potentially a lot more because he's up again in July. We calculated it's about $15-20k a year.

But at the new job he gets a higher base salary about $12k, not enough to make up for the guaranteed bonuses, but he will get possibly 100% tuition reimbursement. How much is that about $45-60k easy. It's a private school part-time for 2 more years.

Right now this past year we paid $28k thus far for 2 full semesters + 1 summer session for tuitions, fees, books, parking, etc. This tuition reimbursment however is taxed. So we will have to pay taxes on whatever the company gives us. Most part-time people take only one summer session one course, DH is taking two summer sessions two courses each.

How does this factor into the current job offer. Let's say DH makes $x, we have to pay for the rest of this year $15-20k for his school stuff. Now our salary is $x-$15k, or it can be just $x. DH likes that idea where we aren't forking over so much of our salary for private school tuition. His courses are $1200/credit and he takes 8-12 credits a semester. It takes 65 credits to graduate and the school raised the tuition by 4% this fall.

So in emails between DH, HR, his future supervisor, and VP of department they said they supported it and would reimburse his degree. And he's talked with A LOT of people who have used this benefit from the company. The company likes happy people. Also there are NO STRINGS attached to this money so he doesn't have to stay for 2 years. This tuition reimbursment is not an option at his current position.

Thus it's tough to weigh really are we losing or gaining money. We are losing guaranteed bonus money, but we're gaining a tuition reimbursement which we've had to pay out of pocket. And DH would be driven to finish either way, so either we out of pocket it with a higher salary or lower salary and have help.

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