Average Salary For Payroll Manager

Average Salary For Payroll Manager – Because students usually underestimate their overall compensation. It’s very satisfying to show someone that their full offer is actually $85k when they think it’s $70k.

In this article, we will delve into compensation by debunking the biggest misconceptions and understanding the concept of compensation all in.

Average Salary For Payroll Manager

Average Salary For Payroll Manager

Before I continue, I want to highlight an important belief from my last article on evaluating new opportunities:

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“I always prioritize the skills I will build over the modest compensation difference. I believe the best path to long-term compensation and self-confidence is to intensely focus on skill development early in my career.

Compensation is not the be-all and end-all. There are many other considerations that are equally or more important.

With that disclaimer out of the way, let’s start by determining the all-in compensation, which is the main idea of ​​this article, and understanding your offer.

The goal of calculating all-in compensation is to capture all the value a potential employer offers you.

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Why does this include non-monetary benefits? Because benefits like prepared breakfasts and lunches you can easily save more than $5,000 a year (more on this later).

But before we get to the all-in compensation details, we must first dispel 3 major misconceptions.

When calculating compensation packages and comparing them to other opportunities, I find that students tend to compare base salary and ignore other aspects of compensation.

Average Salary For Payroll Manager

In some industries, base pay is equal to or less than performance bonuses! This is common in finance, where investment banker analyst positions offer ~$85k base along with the potential for another $85k bonus.

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As you become more senior in the industry, most of your compensation shifts to stock and away from base.

Jeff Weiner, CEO of LinkedIn, is estimated to have a base salary of $815k, but a total compensation package north of $80M according to this article.

Jeff and many other executives barely see their base pay, which is a drop in the bucket compared to total compensation.

While financial positions and executive compensation are extreme examples, you will typically find between 10-50% of your total compensation from sources other than base.

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There is a common saying that investment bankers earn less than McDonald’s restaurant workers…hourly. Although this is an exaggeration, it is not far from the truth.

Let’s say an investment banking analyst earns $85k base + $45k bonus from mid-level performance relative to peers. This amounts to $130k annual base + bonus compensation. Not bad for a new college graduate!

But investment bankers are notorious for working very long hours. It is usual for an average 80 hour work week.

Average Salary For Payroll Manager

So with this assumption, investment banking still pays more than McDonald’s, but only by a margin of ~20% per hour.

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Make a mental note of expected work hours as you compare different opportunities. It can make a big difference.

Offer letters are usually very transparent about the maximum dollar value of the performance bonus, but vague about the probability of receiving this maximum bonus.

In some jobs, employers will rank you against your peers and only give a 100% bonus to the top 10% of employees.

Instead of hiring and then getting burned, ask the hiring manager, recruiter or new hire for the average performance bonus given to new hires.

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Try to understand the distribution of how they give bonuses. What percentage of former employees received a 100% bonus? What about 0%?

Gather this information and assume that you will receive an average performance bonus. Never assume that you will get a top class bonus, even if you are confident in your abilities.

Financial compensation is a function of base salary, performance bonus, signing bonus, stock RSU and 401 (k) match. I have explained each component below.

Average Salary For Payroll Manager

Base Salary: The most obvious and one of the most important components of compensation. You get a portion of your base salary each pay cycle, which helps you pay rent, bills, etc.

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Performance Bonus: This is usually represented as a percentage of your base salary. Some companies use a comparison to take into account the overall performance of the company along with your performance when calculating your bonus.

Signing Bonus: This is a lump sum of money that can range from $0 to $100k+. (Facebook is known to give $100k cash signing bonuses to high-performing software engineering interns.) These bonuses are sometimes not given to you at signing, but instead in your first payment cycle around the second week after starting work.

Stock RSUs: Many public companies issue restricted stock units (RSUs), which are used to retain employees through a vesting scheme. This one gets a little complicated, but I’ll explain it in depth below.

A company can give you 400 shares of stock at the current market price of $100, which equates to a value of $40k at current prices. This is normally granted for four years with a one-year cliff.

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Normally, when your stock runs out, you will be promoted. When you are promoted, many companies refresh your stock package and create a new vesting schedule. If you are a high performer, you will receive a new stock package and schedule for investing before you place the first package.

The shares awarded in your letter of offer are represented as # of shares at the current market price. For example, when I joined LinkedIn in 2017, I received Microsoft shares for $70 (LinkedIn is owned by Microsoft). Today, Microsoft shares are trading at $106, which means my total stock holding is worth 50% more than when I joined.

401(k) Match: For American readers, this is your retirement account. All savings in this account can (and should) be invested in the stock market, and grow tax-free. I wrote an entire article on how to start investing, and a 401(k) is an important aspect of building a solid financial foundation for your future.

Average Salary For Payroll Manager

You are legally allowed to contribute up to $18k of your pre-tax income to this account. Some companies match some of this, giving you extra compensation for free.

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According to Investopedia, the most common employer match is 50 cents on the dollar up to 6% of your base salary.

This means that if your base salary is $80k, your employer will give you up to $4.8k in your 401(k) account. But to receive this free money, you must first invest twice that amount, or $9.6k. So by investing $9.6k of your pre-tax base salary, your 401(k) account balance will actually be $14.5k ($9.6k + $4.8k).

This is much less than monetary compensation, but includes great benefits like free meals, health and wellness stipends, free gym memberships, health/dental/eye insurance, etc.

Free food and snacks: Free food is an expensive and amazing perk that is worth counting. Since I work at LinkedIn in San Francisco, I estimate the value of free breakfast, lunch and snacks at $20 a day (food in San Francisco is expensive). This benefit alone saved me ~$5,000 in after-tax disposable income.

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Health stipend and/or Gym membership: Some companies have health stipends. LinkedIn gives all employees a $2,000 pre-tax bonus to use on health and wellness purchases such as massages, fitness classes, gym memberships, sports, etc. Additionally, many companies offer free or discounted memberships, which are worth around $500 a year.

Health / Dental / Vision Insurance: Depending on your situation, this may be the most important “service” to evaluate. For college graduates in the US, you may stay under your parents’ insurance plan until age 26. Because of this, I will not go too deep on this topic. However, keep in mind that some companies offer much better insurance than others. This can mean you get better quality care and coverage at a much lower cost. It’s worth investing a few hours of research if you don’t participate in your parents’ insurance plan.

For those of you who have a job offer, take another look at your offer letter and see if you can find any hidden pockets of compensation.

Average Salary For Payroll Manager

If you don’t have an offer yet, remember that compensation is all very different from base salary. You can always check back on this article if you have an offer.

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When it comes to comparing and negotiating two offers, recruiters can try to focus the conversation on base salary. But a smart negotiation tactic is to anchor it all on the numbers – after all, that’s what the company gives you.

Finally, some of you may be surprised by the numbers in this article. All of these numbers are based on actual offer letters from entry-level jobs.

It is 100% possible to graduate with an all-in 6-figure job offer. A large part of Missions 2 through 22 is to help you accomplish this and achieve financial security early in your career.

All content in this blog is tested advice that works for this job. But it is up to you to implement it and make it a reality in your life. In this article, we will provide information about the average salary in Singapore, which can be useful for those who study there salary related knowledge. Let’s continue reading this article!

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The labor market in Singapore is growing and showing cautious optimism. In addition, the demand for experienced professionals continues to grow.

To follow

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