Compare Two Job Offers by Take-Home Pay: A Salary, Benefits and Location Worksheet

A larger annual salary does not always produce a larger usable monthly budget. Two offers can differ in pay frequency, expected hours, health premiums, retirement matching, commute, work location, paid time off and one-time payments. A useful comparison writes those pieces down separately before estimating taxes. This worksheet is meant to help a worker ask precise questions and build a cash-flow estimate, not to declare which job is personally best.

Collect both written offer letters, the current or proposed benefits summaries, the health plan's summary plan description or coverage documents, and any retirement-plan description. The US Department of Labor's plan-information page explains the role of written plan documents. A recruiter may describe a 'great match' or 'low-cost health plan,' but the actual eligibility date, formula and premium come from plan terms.

For each offer, write the base pay, expected start date, pay frequency and first pay date. Note whether the number is guaranteed salary, hourly rate times an expected schedule, commission target or a mix. Keep a one-time signing bonus in a separate row; it should not be counted as recurring base salary. Note any repayment clause on a signing bonus and ask for the written terms.

Use the same comparison year and household assumptions for both offers. If one job starts in July and the other in January, a calendar-year gross total can be lower at the later-starting job even if its annualized rate is higher. Separate annualized rate from wages expected to be paid during the specific year.

A $78,000 annual salary is $3,000 gross per check under a simple 26-check biweekly assumption and $3,250 gross per check under a 24-check semimonthly assumption. Both are $78,000 across their respective regular annual schedules before adjustments. The deposit dates and monthly cash flow are different, so dividing annual net pay by twelve is not the same as predicting each bank deposit.

For an hourly offer, multiply the hourly rate by realistic paid hours. A $30 hourly rate with 40 paid hours each week suggests $62,400 of straight-time annual gross over 52 fully paid weeks. A $34 rate with only 32 guaranteed paid hours suggests $56,576 before unpaid time or variable shifts. The higher hourly number can therefore produce less expected annual cash. Ask which hours are guaranteed and whether the schedule is seasonal.

Do not insert overtime as guaranteed pay unless the offer or actual schedule supports it. Under the federal DOL overtime overview, covered nonexempt employees generally have overtime rights after 40 hours in a workweek; eligibility and the regular rate depend on facts and law. A salaried title alone does not decide exemption. Ask how overtime, shift differential and on-call compensation are handled.

If a bonus is discretionary or tied to performance, show a base case without it and a separate scenario with a defensible amount. A commission target is not cash already earned. For each offer, record the dates on which variable pay is expected. This prevents a high annual 'on-target earnings' number from masking a tight first three months.

Federal income-tax withholding is calculated from wages, the payroll period and Form W-4 entries under IRS Publication 15-T. It is not a universal percentage of salary. If you compare two calculator results, use the same filing status and household assumptions, and change only the facts that truly differ between offers. A spouse's income, credits and other jobs remain part of the household tax picture.

Social Security and Medicare are separate from federal income tax. For 2026, ordinary employee Social Security is 6.2% on covered wages up to the $184,500 wage base, while regular employee Medicare is generally 1.45% without the same cap; higher wages can trigger Additional Medicare withholding. The IRS rate guide provides the federal rules. Do not add the employer's matching Social Security and Medicare shares to the employee deduction.

State and local taxes can differ between offers because of work location and residence. A remote role is not automatically taxed only where the worker lives; actual workdays and state-specific rules matter. If two offers are in different states, check those states' official revenue sites and ask payroll which forms it will require. Do not use a simple state-rate comparison as a relocation decision by itself.

An online calculator can estimate annual tax but may not reproduce each paycheck's exact withholding. Use it to compare scenarios, then confirm the offer's payroll frequency, benefit deductions and W-4 setup with the employer. After starting the job, check the first full pay stub. For a midyear change, the IRS Tax Withholding Estimator can use actual year-to-date wages and withholding from the old and new jobs.

Ask for the premium the employee will actually pay per check under the coverage tier you need. Multiply by the number of premium deductions in the plan year, not by an assumed 26 if the employer deducts on only 24 checks. Record the start date of coverage and any waiting period. A job with a low premium but delayed coverage can require other health spending in the transition month.

Premium is only one number. Compare deductible, out-of-pocket maximum, copays, coinsurance, prescription coverage and provider network. The DOL health-benefits advisor recommends examining the plan documents and those features. A plan with a $50 lower monthly premium can still be more expensive for a household with regular specialist visits or a planned procedure.

Make two scenarios: a routine-care year and a high-cost year. In the first, add premiums and likely copays. In the second, include the plan's relevant cost sharing up to a reasonable or maximum exposure under the plan. Do not pretend you know future medical use. The purpose is to compare risk, not only the best-case cash deposit.

If an offer includes an HSA contribution, record the employer amount and timing separately from wages. Confirm that the plan is HSA eligible and that you are personally eligible to contribute under IRS rules. The employer deposit can help with future care costs but is not identical to unrestricted take-home cash. If the plan has an FSA, verify its separate use and forfeiture rules.

A 401(k) match can make an offer more valuable, but it is usually not cash in the checking account. Write down the matching formula, eligible compensation, start date, vesting schedule and whether the employer makes a year-end true-up. The amount actually contributed can differ from the headline percentage when a worker contributes too little, leaves early or has a plan with a per-period match.

Suppose Offer A pays $80,000 with no match. Offer B pays $76,000 and promises a 100% match on the first 4% of eligible pay, subject to plan terms. If the worker contributes 4% throughout the year and meets eligibility and vesting conditions, the simple Offer B match could be $3,040. That brings an illustrative compensation value closer to Offer A, but it does not raise Offer B's monthly take-home by $3,040. The worker's own $3,040 contribution reduces cash available now.

Traditional and designated Roth employee contributions have different current federal income-tax wage treatment, while both generally remain subject to ordinary FICA. The IRS retirement contribution FAQ explains this. Use the same personal contribution assumption in both offer scenarios when comparing tax and cash, unless one plan's match requires a different contribution.

The general 2026 401(k) employee elective deferral limit is $24,500 before any applicable catch-up amount, under the IRS limit guidance. A job change can create contributions at two employers, so track the combined employee amount. Do not assume each employer grants a fresh personal limit.

A commute can consume money and time. Estimate transport cost from real fares, fuel, parking, tolls and expected office days. Separate fixed costs, such as a monthly pass, from variable costs. If one offer is remote, ask whether equipment, internet, travel to headquarters or a coworking space is reimbursed. An employer reimbursement policy can change the actual cost.

Paid time off also matters. Compare vacation, holidays, sick leave, accrual timing and whether unused time is paid on separation under the applicable law and policy. A job with two extra weeks of paid time may be more useful than a small salary difference to a household with caregiving needs. Do not assign a universal dollar value to time; record how many paid days are actually available in the first year.

Work schedule can change expected earnings. An hourly job with 40 regularly paid hours may compare differently from a salaried job that routinely requires long weeks. Ask about typical hours, travel, on-call duties and overtime eligibility. The federal DOL overtime framework applies to covered nonexempt work, but a comparison should use the written job conditions and realistic schedule rather than assuming every extra hour earns premium pay.

Location can also change housing, child care and insurance expenses. A salary increase in a more expensive city is not necessarily a cash-flow improvement. Use current quotes for your own household rather than broad city averages. The same principle applies to relocation costs and any reimbursement or repayment agreement.

A full-year salary comparison can hide a difficult transition. List the last paycheck at the old job, any unused leave payout, the first paycheck at the new job, health-coverage start date, signing-bonus date and expected benefit deductions. Mark whether the first new check is partial and whether it is paid one or two weeks after the work period. Those dates determine how much cash is available to meet bills during the move.

Suppose a worker leaves a $70,000 job and starts an $80,000 job in October. The new annualized rate is higher, but the calendar-year total includes nine months at the former rate and three at the new rate, plus any gap. A tax estimate that assumes $80,000 paid for all twelve months would misstate actual current-year wages and withholding. Use the IRS withholding estimator after both jobs' stubs are available.

If one offer includes a $5,000 signing bonus, ask when it is paid, whether it is subject to repayment and how payroll will withhold on it. A bonus can produce a different net deposit from a regular salary check. It is still compensation; do not compare its post-withholding deposit with an entire year's recurring salary.

Keep a separate emergency-cash row for the first two months. A higher long-run compensation package can still require cash to bridge a gap between jobs or coverage. A comparison that includes dates and liquidity is more useful than one that ends at annual gross pay.

Create two columns, one for each written offer. Add rows for recurring annual gross pay; likely first-year gross pay; pay dates; expected federal, state and local withholding; employee Social Security and Medicare; health premiums; other benefit deductions; your retirement contribution; employer match; and expected net deposits. Keep uncertain rows marked as estimates rather than filling them with a made-up precise number.

Add a second group of rows for annual household costs affected by the job: commute, child care, relocation, home-office costs and health-plan risk. Add noncash benefits such as paid time off, coverage quality, vesting and work flexibility in a separate section. This prevents a dollar figure from pretending to capture every reason one job may be preferable.

Ask each employer to confirm unanswered terms: actual pay frequency, start date, first payday, insurance premium for your coverage tier, coverage start, deductible, retirement match formula and vesting, bonus conditions, remote-work approval and normal schedule. Record the source and date of each answer. If an item changes before acceptance, update both scenarios consistently.

After accepting an offer, keep the worksheet. Compare the first full pay stub and plan enrollment documents with what was promised. If federal withholding differs, check the W-4 and actual payroll method before concluding the offer value changed. If a benefit premium or pay rate differs from the written terms, ask payroll or benefits to explain it. The worksheet then becomes a practical verification tool, not just a one-time decision aid.

Use the worksheet to identify the assumptions that change the answer. If Offer A looks better only when a discretionary bonus pays in full, show that dependency. If Offer B looks better only when health costs are low, show the high-cost scenario beside it. If one offer needs a two-month cash bridge, include that requirement before accepting it. These are more useful conclusions than a single 'best salary' label.

The worksheet cannot assign your personal value to a manager, career path, job stability or family time. It also cannot predict the exact federal tax return from a preliminary pay estimate. Keep the financial arithmetic transparent and use your own priorities for the final choice. A clear comparison lets you see which questions are factual and which are preferences, so you can ask employers for facts and make the preference decision yourself.