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CMT

Compensation Mastery Tool

Getting a job is hard.  Comparing compensation shouldn't be

The CMT is your ticket to financial certainty when comparing 2 different job offers

The CMT organizes all your compensation elements for you. This will allow you to

Understand your offers

Convert your job offers into an easy-to-read format, giving you a side-by-side comparison 

Negotiate based on facts

Remove the uncertainty and doubt about how to approach your salary negotiation by using the correct information

Make the right decision

Confidently accept the best job offer knowing that you selected the most advantageous offer for you

The CMT walks you through how to easily quantify and compare things like:

Income could take many forms, including:

Salary - Your hourly or annual payment for your services. This is what most people focus on in a negotiation, but it is only one component of your compensation.

Bonus - could be sign-on, relocation (if you're moving), or performance-based. The performance could be calculated by individual metrics or company goals, or both.

Other - like stock options, Restricted Stock Units, or other profit-sharing vehicles.

Investments can take a number of forms, including:

Retirement match - This can be a percentage or a dollar amount. And, it could be an automatic deposit, a dollar-for-dollar match, or a proportional match (for example, 50 cents for every dollar you contribute).

Health Savings Account - This type of savings account lets you set aside money on a pre-tax basis to pay for qualifying medical expenses (such as deductibles, copayments, and coinsurance).  You don’t pay taxes on this money.  This means you’ll save an amount equal to the taxes you would have paid on the money you set aside.

Flexible Savings Account - An FSA is similar to an HSA. The biggest difference is that FSA withdrawals can be made for childcare expenses as well as medical expenses.  Like the HSA, you can contribute to an FSA using your gross (pre-tax) pay, making the contributions tax free.

Commute - For public transit, it can be a bus or train pass. For private transit, could be for parking, gas, tolls. for either, it can be a fixed monthly stipend (which might be subject to income tax), or it could be billed directly to the company (so not subject to income tax for you).

Childcare - There could be an on-site or nearby childcare facility with reduced (or free) rates. This could also be a fixed dollar amount per child given to you. 

Student loan reimbursement - If you have student loans, this could come in the form of a fixed subsidy each year, or a pay-off after a number of years working there.

Other - This one includes so many things, including gym and fitness instructor memberships, laptop/phone/hot spot, conferences, training, and other education. Just make sure these are things you would actually use and thus value.

Healthcare - Health care costs can vary greatly from company to company, resulting in thousands, if not tens of thousands, of dollars of differences in cost between plans. Plans typically cover medical, dental, and vision, each with its own monthly premiums, co-pays, and deductibles.

Commute - The cost of getting to and from work can also vary greatly. If you drive, you may be paying not only gas and parking fees, but also additional wear and tear on your vehicle.  Public transit costs are a bit easier to calculate.

Working from home - If working remotely, you may incur costs like a robust internet connection, more in heating and A/C, and more in electricity.  You may also have purchased home office equipment - both furniture and IT-related items.  And, you're no longer getting free coffee or food in your workplace, so you're now paying for those benefits.

Uniform/clothes - You may need to maintain a certain professional image, whether that is a formal uniform, or just professional clothing and accessories.

Paid time off usually comes in one of three forms:

Vacation days - Measured in days or hours. Can be 5-25 days per year, depending on company policies, seniority, and other factors.

Holidays - Company-wide days off on which nobody works (or at least no one is expected to work.)

Personal/sick days - These are different from vacation days in that they are used for illness or to deal with a personal/private matter.

Note that paid time off is not the same as paternal leave, FMLA leave, unpaid leave, furlough, or any other government- or state-mandated leave.

Time spent does not just mean amount of hours you spend working at the job.  It also involves:

Commute time:  Time to get from home to the office.  This might vary if you have a hybrid schedule, or it might be zero if your work exclusively remotely.

Preparation time:  Time for getting dressed, hair, make-up, pack bag, make lunch, drop off kids at childcare, and the like.

All the time above is time during which you may not be getting paid, but it's time that you can't use to spend with family or friends.

The total time spent above is used as part of the "Total burden wage" calculation.

If the job requires a move, there are also:

State income taxes - the differences can be large, especially going from one of the nine states that do not levy a personal income tax to a state levying high rates on personal income. The CMT has a built-in calculator that estimates the state-level income taxes, given your filing status and number of dependents.

Cost of living differences - this is an admittedly subjective calculation, but it is important to get a general sense of the approximate difference in the cost of living between you current and possible future location.

Here is how the CMT works

Make sure to have THESE DETAILS to complete the calculations. Once you log in, enter your information into 4 sections described below.

Step 1 - Introduction

Collects your preferred name and the full and shortened names of both jobs you're evaluating.

VIDEO GUIDANCE FOR STEP 1

Step 2 - Earnings & Offerings

Earnings covers your salary and bonuses. Investments includes retirement, Health Savings Account, and Flexible Savings Account matches.  Paid time off accounts for vacation days, holidays, and sick/personal days.  (See graphic to the right.)

VIDEO GUIDANCE FOR STEP 2
Step 3 - Subsidies & Costs

Covers subsidies like childcare and education, as well as your costs such as healthcare and commute.  Also covers time you spend at the job - hours worked, commute time, and preparation time. 

VIDEO GUIDANCE FOR STEP 3
Step 4 - Taxes

Collects your tax filing status, number of dependents (if any), and the states you'll be paying income tax in for both jobs.

VIDEO GUIDANCE FOR STEP 4
Step 5 - Results

The summary and differences between both compensation packages are displayed, item by item.  A detailed income tax analysis is also displayed. 

VIDEO GUIDANCE FOR SUMMARY

PDFs that capture all the information you need during negotiations

The first page of the Comparison Summary (at right) shows 4 key metrics, as well as a list of aggregated types of compensation you inputted.

Gross annual compensation is the total, pre-tax and pre-costs amount each job offers.

Net annual compensation subtracts income taxes and costs, showing you how much will go into your bank account each year.

Total burden wage is your net income divided by total number of hours you are involved with the job, including paid time off, commute, and preparation.

Total income tax aggregates your Federal, FICA, and State income tax amounts to show your estimated total income tax liability.

Net annual compensation maximizes your take-home income, and Total burden wage maximizes your take home pay per hour involved with the job.

SAMPLE SUMMARY PAGE

We also calculate the income taxes of both jobs to estimate* your take-home pay

*Tax liabilities are estimates only. Consult a tax professional regarding your specific situation.

The CMT Income Tax Analysis is a 2-page PDF that walks you through the estimated income tax liability for each job.

 Federal section shows the income amount of each bracket and percent of tax levied on each bracket.

FICA section shows your estimated FICA income tax liability, including brackets and amounts.

State section shows your estimated state tax liability for the state you selected. States set their own income tax laws, which can vary greatly.

Transparently showing this level of detail on all 3 tax liabilities enables you to understand your marginal tax rates.  So if you accept a raise at your job, you can quickly calculate your income tax on that extra income.

 SAMPLE INCOME TAX ANALYSIS

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1 month

$37

CHOOSE 1 MONTH
Save $24

3 months

$87

CHOOSE 3 MONTHS
Save $157 + Bonus 30 min coaching

12 months

$287

CHOOSE 12 MONTHS

and get a bonus 30-min coaching session

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