What is in lauded in HHI?

[Anonymous]

Moved to the US for my husband's job and would like to enter the workforce. I need to understand salary and conditions structures and definitions and wonder whether somebody could kindly clarify a few points. When people refer to HHI, dose that just include pre-tax salary or would it also include the value of health insurance funded by the employer and pension entitlements? Do companies and NGOs typically pay pension benefits or are you expected to provide for these yourself from your salary? TIA!

[Anonymous]

I meant what is INCLUDED in HHI?

[Anonymous]

Anonymous wrote:I meant what is INCLUDED in HHI?

I think most people consider their HHI the combined total of their salaries, without factoring in health and pension benefits.

As far as pensions, unless you are in a public position (federal, state, or county job), you will probably be responsible for your own retirement. In lieu of the traditional defined benefit pension, many companies have 401ks (or 493bs, for non-profits) to which they will match a portion of your contributions. A common example, is a 1 for 1 match of 3% or 6%.

Not to complicate the picture, but often non-profits pay lower salaries but compensate with higher benefits. For example, I was earning $95k as a manager for a corporation, with a 3% match, and I moved to a new job at a non-profit with a salary of $92k and a 10% contribution (no contribution at all was required of me). So the second job was actually better overall compensation, although my HHI dropped by a few thousand.

Hope this was not information overload!

[Anonymous]

Keep in mind that the HH means household. So if you are thinking about only your own salary then HHI isn't the right concept. Salary here means pre tax salary. Out of that will come federal and state taxes, social security and Medicare taxes, and optional health insurance, retirement contributions and other insurance programs. Employers pay their half of SS and Medicare, their portion of insurance, and whatever retirement contributions they provide.

[Anonymous]

Pure salary, plus any other real cash flow like interest, rental, and investment income.

[Anonymous]

One of the PP here, maybe we can simplify HHI as all the incomes entered onto a tax form, prior to making any deductions or adjustments.

[Anonymous]

Anonymous wrote:Pure salary, plus any other real cash flow like interest, rental, and investment income.

I've never considered interest or dividends as part of my HHI. They're "extras." If people generally include those types of things, then my HHI is higher than Ive previously thought.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Pure salary, plus any other real cash flow like interest, rental, and investment income.

I've never considered interest or dividends as part of my HHI. They're "extras." If people generally include those types of things, then my HHI is higher than Ive previously thought.

Why wouldn't it? It's all income.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pure salary, plus any other real cash flow like interest, rental, and investment income.

I've never considered interest or dividends as part of my HHI. They're "extras." If people generally include those types of things, then my HHI is higher than Ive previously thought.

Why wouldn't it? It's all income.

i don't consider it either. I basically consider that so far removed from my life, none of it ever hits my checking/savings (I use DRIPs), so for me wages are all i consider (and to account for additional tax burden we do extra withholding).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pure salary, plus any other real cash flow like interest, rental, and investment income.

I've never considered interest or dividends as part of my HHI. They're "extras." If people generally include those types of things, then my HHI is higher than Ive previously thought.

Why wouldn't it? It's all income.

I agree. Our HHI is about $30K less than our HHI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pure salary, plus any other real cash flow like interest, rental, and investment income.

I've never considered interest or dividends as part of my HHI. They're "extras." If people generally include those types of things, then my HHI is higher than Ive previously thought.

Why wouldn't it? It's all income.

I agree. Our earned income is about $30K less than our HHI.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Pure salary, plus any other real cash flow like interest, rental, and investment income.

I've never considered interest or dividends as part of my HHI. They're "extras." If people generally include those types of things, then my HHI is higher than Ive previously thought.

Why wouldn't it? It's all income.

I agree. Our HHI is about $30K less than our HHI.

No, your HHI is your income from all sources, not just your wages. You are choosing to invest $30k in your existing portfolio. And you are paying tax on that income.