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Creative-Will-4416 t1_jeberbk wrote

Reply to comment by [deleted] in LPT: Hourly wage multiplied by 2,000 is your yearly income by [deleted]

Because none of those are take home. You can not take unlimited unpaid time off. Also many jobs do not offer paid time off. So 2000 is a nice conservative estimate of yearly income.

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[deleted] OP t1_jebld17 wrote

[deleted]

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Creative-Will-4416 t1_jebmx70 wrote

Ok. If you quit we need to adjust the number of hours for the calculation. PTO is meant to be used. Most workers will not have excess PTO. Health insurance benefits can not be used for rent. It is NOT income. You do not pay taxes on health insurance paid by your employer(except for a couple of cases like a domestic partner). 2000 gives you a reasonable, if not exact, number for the yearly income. Being conservative is important for anyone who doesn’t have the PTO benefits and is taking 2 weeks unpaid leave for sickness. All of this is for the US.

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[deleted] OP t1_jebtjxe wrote

[deleted]

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Creative-Will-4416 t1_jeec0p4 wrote

Let’s remember that this is a quick estimate of yearly income. If you are considering jobs, then you should go into the details. Compare benefits, and whether the job offers PTO. I think we can both agree, that if we want a detailed report of income and benefits that OP’s formula isn’t good enough. As a quick head estimate for conversation and comparison it is certainly good enough.

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