USA salary
USA salary
An international school in the USA is offering a 10 month salary for the year. Is this acceptable? I know of countries that offer a 13th month as a bonus. ....but 10 months sounds odd. Is there good reason for this or is the school trying to rip off its teachers? Is this related to the J1 visa that they give expat teachers
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shadowjack
- Posts: 2140
- Joined: Sat Oct 06, 2012 9:49 am
Re: USA salary
Many districts in the US pay 10 months direct salary rather than withholding salary and paying it prorated over 12 months.
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Thames Pirate
- Posts: 1150
- Joined: Fri Jul 05, 2013 8:06 am
Re: USA salary
As long as you know how to budget and the overall salary is acceptable, I don't see why it would be a concern. Make sure you file your taxes appropriately as you will likely receive a big tax return.
Re: USA salary
Some schools (public schools) will allow you elect to receive your salary over a 12 month period. Basically, they split your check up into 12 equal parts and you receive your salary over the course of the year. The school system I just worked for in the USA did this for me.
Response
There isnt a good reason just a reason, in that it reduces their payroll and HR costs. Almost all ITs are effectively getting a 10 month salary, int hat you are working 10 months and being given X compensation (including salary). Many ISs will either require or offer as an option the opportunity to annualize that salary, dispersing the salary over 12 months instead of 10. It costs the IS more, but many see it as a negligible cost. It has nothing to do with the J1 visa, except at the end of the visa period in your last year you will have to leave the country in June likely as opposed to the end of the summer in August.
It is rare that you will find a a US IS that will provide a bonus, but if they do its going to be in the contract or referenced as part of some kind of performance incentive.
I would claim exemption as opposed to relying on a tax return, you are essentially giving the US government an interest free loan, and once you leave you will have increased difficulty getting it. They will pay you with a check in USD, and you may have difficulty cashing or depositing it out of country.
It is rare that you will find a a US IS that will provide a bonus, but if they do its going to be in the contract or referenced as part of some kind of performance incentive.
I would claim exemption as opposed to relying on a tax return, you are essentially giving the US government an interest free loan, and once you leave you will have increased difficulty getting it. They will pay you with a check in USD, and you may have difficulty cashing or depositing it out of country.
Re: USA salary
The OP asks if this is acceptable, and ultimately the answer is "If it's acceptable to you, than yes".
It is legal.
It can actually be a benefit:
1) You get paid bigger amounts each month, so you're getting your money earlier than colleagues on a 12-month schedule. Invest that, and start making returns earlier.
2) You're guaranteed not to work in those 2 months of the year that you're not paid, while most of us see the school year bleed into the summer months, and have less than a 2 month summer holiday. (Life is soooo tough when summer holiday is only 6 weeks...)
3) If things go south and you get fired or quit, you'll have been paid proportionately for the summer months, whereas someone on a 12-month schedule would never see that proportion.
The key thing is to make sure that you're truly getting a year's worth of pay, paid in 10 months. If that isn't true, if you're just working for 10 and paid for 10, well, my answer changes significantly.
It is legal.
It can actually be a benefit:
1) You get paid bigger amounts each month, so you're getting your money earlier than colleagues on a 12-month schedule. Invest that, and start making returns earlier.
2) You're guaranteed not to work in those 2 months of the year that you're not paid, while most of us see the school year bleed into the summer months, and have less than a 2 month summer holiday. (Life is soooo tough when summer holiday is only 6 weeks...)
3) If things go south and you get fired or quit, you'll have been paid proportionately for the summer months, whereas someone on a 12-month schedule would never see that proportion.
The key thing is to make sure that you're truly getting a year's worth of pay, paid in 10 months. If that isn't true, if you're just working for 10 and paid for 10, well, my answer changes significantly.
Reply
@Sid
There are just as many downsides:
1) You dont have to worry about budgeting for the summer months, many ITs are really bad at things like budgeting.
2) Thats not really true, An IS can schedule its pay date however it wants, and likely at the end of the month. An ITs first pay dismemberment can be the last day of September and end on the last day of June (10 months later), thats plenty of summer time that can be adjusted, lost, etc. For instance an IS could state in the contract that the last day of work is 1-June, but than have checkout and grade reports due 10-June. If the last day of classes is the last day of May, while its possible there would be ITs that are done and ready to check out on the 1st, many ITs are going to need more time, and it would essentially be unpaid time.
3) This is generally true of all ITs anywhere, but at least in the US you have a much stronger legal position, and dont have a language barrier. The IS couldnt legally withhold the salary/wages that have been earned. Every state has a division of labor that would make getting those lost wages back relatively routine. You download a form, complete it include your contract and your salary dispersemnts, and mail it off. A month later the IS sends you your remaining salary.
This is true but its true everywhere, an IT has to make sure that the IS isnt citing the salary in terms of 12 months and only paying you for 10 months.
There are just as many downsides:
1) You dont have to worry about budgeting for the summer months, many ITs are really bad at things like budgeting.
2) Thats not really true, An IS can schedule its pay date however it wants, and likely at the end of the month. An ITs first pay dismemberment can be the last day of September and end on the last day of June (10 months later), thats plenty of summer time that can be adjusted, lost, etc. For instance an IS could state in the contract that the last day of work is 1-June, but than have checkout and grade reports due 10-June. If the last day of classes is the last day of May, while its possible there would be ITs that are done and ready to check out on the 1st, many ITs are going to need more time, and it would essentially be unpaid time.
3) This is generally true of all ITs anywhere, but at least in the US you have a much stronger legal position, and dont have a language barrier. The IS couldnt legally withhold the salary/wages that have been earned. Every state has a division of labor that would make getting those lost wages back relatively routine. You download a form, complete it include your contract and your salary dispersemnts, and mail it off. A month later the IS sends you your remaining salary.
This is true but its true everywhere, an IT has to make sure that the IS isnt citing the salary in terms of 12 months and only paying you for 10 months.