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So I just got my first paycheck today after starting my first job as a PA 3 weeks ago (hooray!). However, when I calculated the gross pay for a year, it is about 6,000 less than we had discussed. Which it greatly below national average. Now I know I probably should've checked this before, but I guess in my oblivion I assumed they're a well respected hospital that hires PAs regularly, so they wouldn't rip me off.

 

I was just wondering if anyone has any experience or insight on this. Maybe there is a reason why that I'm unsure of. Just so I don't bring this up for no reason. Also to be clear the rate I'm talking about is without taxes. The taxes were taken out of the gross pay today. And also who would I even go to about this? The only person I discussed it with was the recruiter. Since I signed my offer letter, does this mean that it can't be changed?

 

Thanks any help would be appreciated!

 

P.S I know it was irresponsible of me to not check or say something before starting. I'm kicking myself now. :-/

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If this is your first paycheck, this IS the time to verify that all the numbers (gross, deductions, etc.) ARE correct. 

 

First, some items to check for yourself:

  • is this check for a full pay period? or partial?  If partial, that would make the gross pay number appear low if you are extrapolating it for a year.
  • are you extrapolating for the right number of pay periods?  i.e., If you are paid bi-weekly, that's 26 paychecks, if you are semi-monthly, that's 24 pay periods.

Does your offer letter include your gross pay?  That's all you need to go to whomever prepares or approves the payroll and inquire how they determined the numbers input.

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If this is your first paycheck, this IS the time to verify that all the numbers (gross, deductions, etc.) ARE correct. 

 

First, some items to check for yourself:

 

  • is this check for a full pay period? or partial?  If partial, that would make the gross pay number appear low if you are extrapolating it for a year.
  • are you extrapolating for the right number of pay periods?  i.e., If you are paid bi-weekly, that's 26 paychecks, if you are semi-monthly, that's 24 pay periods.
Does your offer letter include your gross pay?  That's all you need to go to whomever prepares or approves the payroll and inquire how they determined the numbers input.

 

Ah thank you so much! I am biweekly. What I was doing was multiplying my biweekly rate times 2 and then multiplying that by 12. Using 26 pay periods makes it much closer to what was agreed upon. Off by $7 biweekly but I'm ok with that haha. I'm not very financially savvy. Once again thank you! You helped prevent me from making a bit of a fool of myself. :-)

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Ah thank you so much! I am biweekly. What I was doing was multiplying my biweekly rate times 2 and then multiplying that by 12. Using 26 pay periods makes it much closer to what was agreed upon. Off by $7 biweekly but I'm ok with that haha. I'm not very financially savvy. Once again thank you! You helped prevent me from making a bit of a fool of myself. :-)

Rookie mistake :). I've based my wife and my finances on the 24 paychecks. Want to know a secret? We take the extra two paychecks as completely ours to do whatever..like currently being in Jamaica :-P. Get your finances in order when you are making big boy/girl money. It'll be a great service to yourself down the line
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Guest Paula

Now is the time to learn financial savviness and to learn budgeting, have a spending plan and learn to live successfully by managing your money.  Don't let it manage you.  AliB was quite astute in helping you figure this out.  

 

Have a great career and best wishes to you in your new job!

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Seems like this was resolved.  But my advice is address it now, first go talk to payroll because maybe it is not a mistake but as others have mentioned, something to do with taxes or splitting up the pay periods, etc.  Second is if you are really being paid less than the offer letter, go back to your recruiter and have them address it.  An offer letter is not binding like a contract is.

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When I was a newly minted PA, I too was shocked by what I was getting paid after taxes.

That is what happens when you start hitting high 5 figures, low 6 figures for salary. You end up in a new tax bracket and subsequently pay more money to all taxing entities.

Also my anecdotal experience was that I faced a tax burden at the end of my first full year of employment. I took too many deductions on my W2 and did not place near enough money in my 401k. I was used to making a lower salary and this was reflected in my financial decisionmaking. 

After I realized I was making big boy money, I only declared myself as a deduction and tried to max out the retirement. I also found unfortunately that I made too much money to itemize my student loan interest. 

Good luck.

G Brothers PA-C

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When I was a newly minted PA, I too was shocked by what I was getting paid after taxes.

That is what happens when you start hitting high 5 figures, low 6 figures for salary. You end up in a new tax bracket and subsequently pay more money to all taxing entities.

Also my anecdotal experience was that I faced a tax burden at the end of my first full year of employment. I took too many deductions on my W2 and did not place near enough money in my 401k. I was used to making a lower salary and this was reflected in my financial decisionmaking.

After I realized I was making big boy money, I only declared myself as a deduction and tried to max out the retirement. I also found unfortunately that I made too much money to itemize my student loan interest.

Good luck.

G Brothers PA-C

^ so true. This is exactly what I did. Dropped my deductions and maxed out 401k. I got some time to make up now so I can hope to retire in 20 years.

 

Sent from my S5 Active...Like you care...

 

 

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