New job in US - what to ask for in contract negotiations

bigred

I work for a multinational here in Ireland and it looks like I'm going to take a job in one of the US sites based in PA. They're going to sponsor a full relocation of me and my family (wife + 4 kids). I have to move from my Irish contract to a US contract. I just want to be sure I'm not missing something drastic from the US contract when we get into the nitty detail.
Can you help me with the following;

1. Salary - is the effective tax rate about 30% of your gross? What odd deductions do the take over there? How does cost-of-living compare (groceries, utilities etc.)?
2. Pension - do they exist? Can I move what I have already saved? Do they contribute, or is it all just me?
3. Healthcare - my current job covers VHI for all the family. Is that the done thing over there, or is it just the employee that gets cover? Four kids would make it really expensive to foot the bill myself
4. Vacation leave - how many days does the average joe get?

lonestargirl

bigred wrote: »

Salary - is the effective tax rate about 30% of your gross? What odd deductions do the take over there? How does cost-of-living compare (groceries, utilities etc.)?

Where are you going to be living? There is federal tax, some states have their own tax on salaries and then most states have sales tax on purchases. Most emloyees work under withholding taxes, the employer pays the IRS the basic tax figure and then at the end of the year you file a return claiming for dependents (5 for you) and deductions such as interest paid on mortgage etc.

I presume you are going to be renting a house. Do your research into the schools in the locality (maybe ask others in the company) as school disricts are based on where you live. If you were thinking of buying remember to factor in property tax, this + house insurance adds alsmot 50% to my monthly mortgage payments.

The cost of living varies widely across the US, I find groceries, gas and utilities in general to be cheaper than in Ireland. Again location is important, I spend $20 a month in electricity in December but could spend $300 in July because the A/C is running 24/7. We paid out about $1500 in deposits to switch on our various utilities and get bill phones as we had no credit history. This lack of credit meant we also had to pay cash for our car and we did get treated as a first time driver for the purposes of insurance. Look up the DMV website for the state you are moving to and check the rules for getting driving licences, again these rules vary from state to state.

bigred wrote: »

Pension - do they exist? Can I move what I have already saved? Do they contribute, or is it all just me?

Where are you planning on retiring? I presume you are going on L1a visas. Is there a possibility that your company will sponsor you for greencards? (you don't say how old your kids are but make sure the company start the GC process before any of the kids age-out @ 21). What is your current pension arrangement? Maybe it would be good to negotiate that you/they continue to pay into your Irish pension fund for now.

bigred wrote: »

Healthcare - my current job covers VHI for all the family. Is that the done thing over there, or is it just the employee that gets cover? Four kids would make it really expensive to foot the bill myself

My husband's employer pays for him and then we have to pay to add me which is about $3k a year. As they are looking for you to relocate you must be pretty senior so I would push for them to pay for the whole families insurance especially since healthcare is part of your current contract. You also need to look at the plan that they are offering, see what the annual deductible and lifetime maximum payouts are. I wouldn't set foot into the US until your health insurance is in place.

bigred wrote: »

Vacation leave - how many days does the average joe get?

My husband gets 10 (all of which must be taken in one go), but I think for a multinational professional 15-25 might be more normal. I have heard of people who got relocated getting one return flight home per year - not sure if you'll get this seeing as there are 6 of you.


What I would be looking for in a relocation package.

• shipping costs
• flights for relocation + flight to sort out house beforehand
• deposit + first months rent for house
• visa costs + GC costs if that time comes
• rental car (or 2) for a few weeks
• pay for an accountant to do your first year's tax return
• salary that will give at least equivalent quality of life
• cash to replace electrical items, stock cupboards etc
• cover the medicals + vaccinations that the kids will need for school
• ask them to 'gross up' the relaocation package - i.e. they will cover the tax due on the expenses

spideog7

You're obviously in a much different position than me but I'll tell you what I know from being over here.

As regards holidays my company gives this:
years: 17 days
4+ years: 20 days
8+ years: 25 days
16+ years: 30 days

Compared to what I was getting in my last job at home... 27days after being there 6 months

But I've heard of people starting with less and getting more much quicker or negotiating more into their contract.

The state of Pennsylvania charges a 3.04% income tax and depending on where you live a local tax of between 0-2%. Sales tax (VAT I guess) here is 7%.

As regards groceries and stuff I find it's about equal, that is that something which cost E5 at home might cost $5 here. It's hard to judge but for reasonably good stuff it's not ridiculously cheaper (other than petrol and alcohol) of course you can get really cheap stuff but it's mostly crap.

I think credit scores are a big problem, because even if you have impeccable credit history at home I don't know if there is any way to carry it over. I've heard that you have to have a credit account (credit card or loan or something) for 6 months before they start your credit history. I applied for a credit card and it got rejected on the grounds that they had no credit history for me so I guess no news is not always good news!! I presume I would not have the same problem with my bank since I have a savings account and all with them, but I would probably be on a higher rate.

Get a letter from your insurance company stating your driving history (if it's good, no-claims bonus etc.) and then look for an insurance company over here that will accept it (some will).

Look at the cost of schools, they can be very expensive, even elementary schools!

Keep receipts and whatnot for all unreimbursed moving expenses as they are tax deductible.

Hope that helps, good luck with everything.

lonestargirl

spideog7 wrote: »

Look at the cost of schools, they can be very expensive, even elementary schools!

This is why choosing a house is very important. I bought the smallest house in my neighbourhood but because there are many million dollar homes in the area the schools are very well funded (their money comes from the property tax). I would have no problem sending my kids to my local public schools. With 4 children it may be worthwhile spending a little extra on your rent in order to be able to avoid paying for private school.

mackey087

no real advice to give. just ask for a crazy sum of money and who knows, you might get lucky.

bigred

lonestargirl wrote: »

Where are you going to be living?

PA (as per OP )

lonestargirl wrote: »

What I would be looking for in a relocation package.

• shipping costs
• flights for relocation + flight to sort out house beforehand
• deposit + first months rent for house
• visa costs + GC costs if that time comes
• rental car (or 2) for a few weeks
• pay for an accountant to do your first year's tax return
• salary that will give at least equivalent quality of life
• cash to replace electrical items, stock cupboards etc
• cover the medicals + vaccinations that the kids will need for school
• ask them to 'gross up' the relaocation package - i.e. they will cover the tax due on the expenses

Great list - some stuff there I'd never have thought of. Company should cover most, but I'll make sure they're on the list.

spideog7 wrote: »

Look at the cost of schools, they can be very expensive, even elementary schools!

Keep receipts and whatnot for all unreimbursed moving expenses as they are tax deductible.

Two things I hadn't thought of also. I was under the impression your local taxes pays for the schooling. Where I'm going, the public schools are apparently very good (score 8/9 out of 10), so wouldnt be going private. Is there much outlay in the public system?

Good call on the deductibles for moving!

mackey087 wrote: »

no real advice to give. just ask for a crazy sum of money and who knows, you might get lucky.

Simple...
[Doctor Evil Pose]
One... Million... Dollars...!!
[/Doctor Evil Pose]
:D


Thanks everyone. I had a chat with a Cork lad based over there that did the same thing a couple of years back and his main issues were credit rating and getting his drivers' licence. He's actually now been approved for a mortgage, having been there less than two years, so things are going well for him.

lonestargirl

bigred wrote: »

PA (as per OP )

Doh!

bigred wrote: »

Thanks everyone. I had a chat with a Cork lad based over there that did the same thing a couple of years back and his main issues were credit rating and getting his drivers' licence. He's actually now been approved for a mortgage, having been there less than two years, so things are going well for him.

Driving licenes are becoming an issue over here since the introduction of REAL ID, my licence is only valid for the length of my status whih means a trip to the DMV every year when I renew my status. TX licences for non-citizens are also potrait rather that landscape and have "Temporary Visitor" in big red letters accross the top, making your immigration status known to anyone who looks at your licence.

We got a mortgage and closed on our house 8 weeks after moving here. 25% deposit plus dealing with a local branch, get someone from your company to make introductions for you at the bank.

spideog7

PA sucks for getting a drivers licence. I've mentioned here before, but you have to be here for a year in the future before they give you a driver's licence. So depending on your status when you come over, it might actually take a long time before you have a visa valid for a year into the future (as you might only get a visa for a year at a time), even if you intend staying here for much longer!! While you can drive on your Irish drivers licence you can't register a car and so you can't buy a car and have it in your name. :mad: