Base salary is the loudest line in an offer letter. Total compensation includes cash, equity, benefits, and time — often worth 30–50% more than base alone.
Base, Bonus, Equity, Benefits Map
- Base: predictable W-2 wages
- Bonus: target % × company performance × personal rating
- Equity: RSU/options with vesting cliff
- Benefits: employer health premium share, 401(k) match, life/disability
- PTO: paid days × daily rate
Dollarizing Employer 401(k) Match
100% match on first 4% at $90,000 salary = $3,600/year employer contribution if you defer 4% ($3,600). Immediate vesting = cash-equivalent; graded vesting discounts value.
Health Premium Employer Share
If employer pays $600/month of family premium ($7,200/year), that is invisible salary. An offer with lower base but $200/month better employer premium may net ahead after tax.
Equity at Conservative Valuation
$80,000 RSU grant over 4 years = $20,000/year paper value. Haircut 30% for stock volatility and your ability to sell = $14,000/year planning number. Private company equity may have limited liquidity until a sale, IPO, or tender offer.
Package Comparison Scorecard
Sum annualized after-tax cash + employer-paid benefits + risk-adjusted equity. Rank by year-one liquidity if you have near-term rent or debt goals; rank by year-four if wealth-building.
Equity is speculative; never budget groceries on unvested RSUs alone.
Building a Total Comp Scorecard
List every cash and non-cash line: base salary, target bonus (probability-weighted), signing bonus, equity grant at conservative valuation, employer 401(k) match (vested portion only), employer HSA seed, health premium subsidy, life/disability insurance imputed value, tuition reimbursement, and commuter benefits. Convert each to annual after-tax dollars where possible. A $100,000 base with 90% bonus target at 15% probability adds $13,500 expected gross — not $15,000 certain.
Equity at Conservative Valuation
RSU offers quote grant value at hire-date stock price. For planning, haircut 20–40% for volatility and apply vesting schedule — year-one vests might be only 25% of the headline grant. Tax withholding at vest is wage income; model net shares received after sell-to-cover. Do not treat unvested equity as spendable cash in year-one budget.
Worked Example: $95,000 Package vs. $102,000 Base
Offer X: $95,000 base, 6% match immediate vest, $200/month employer health subsidy, $15,000 RSU over four years. Offer Y: $102,000 base, 3% match three-year cliff, $350/month employee premium. X may win on benefits even with lower base once match and premium delta exceed $7,000 annually after tax.
Frequently Asked Questions
Is total comp the same as W-2?
W-2 reflects taxable wages paid; equity, employer-only benefits, and imputed income may differ from your scorecard.
How do I compare two startups?
Weight cash higher when equity is illiquid; discount grants without clear liquidity timeline.
Where do I model net pay?
Run each base through the salary-after-tax calculator then add after-tax benefit dollars.
Signing Bonuses, Clawbacks, and After-Tax Cash
A $12,000 signing bonus looks like a clean win until supplemental withholding and a one- or two-year clawback appear. If payroll withholds ≈ 35% combined federal/state/FICA on the bonus check, you may bank ≈ $7,800. Leaving before the clawback window can require repayment of the gross amount — plan a cash reserve. Treat signing money as year-one cash only after modeling net and reading the repayment clause.
Fringe Dollars: Commuter, Tuition, and Wellness
Pre-tax transit and parking lower taxable wages within IRS limits; taxable wellness stipends raise Box 1 wages. Tuition reimbursement up to educational assistance limits may stay non-taxable when rules are met. Convert each fringe to annual dollars you would otherwise spend after tax. A $150/month transit benefit can be worth more than a $1,200 raise once you account for marginal tax on the raise.
Side-by-Side: $110,000 Thin Benefits vs. $98,000 Rich Package
Offer Thin: $110,000 base, 2% match with three-year cliff, employee pays $420/month for family medical. Offer Rich: $98,000 base, 5% immediate match, employer covers $320/month of premiums, $2,000 HSA seed. Match delta ≈ $2,700–$3,000/year once vested; premium delta ≈ $3,840; HSA seed $2,000. Rich can exceed Thin by $5,000+ in first-year economic value even with a $12,000 lower base. Stress-test both in the job offer comparison calculator.
Probation Windows That Delay Match and Equity
Ninety-day waiting periods on 401(k) match, HSA seeds, or first RSU grants silently erase year-one value. Missing one quarter of a 5% match on $98,000 is about $1,225 of employer money before vesting schedules. Ask for eligibility dates in the offer email and annualize only the months you will actually receive benefits. A lower base that starts benefits on day one can beat a higher base that waits until month four. When comparing offers, put eligibility month on the same row as base salary so delayed benefits are visible at a glance.
Frequently Asked Questions
Should unvested equity count in year-one total comp?
Count only the tranche you reasonably expect to vest while employed; haircut for volatility.
Is employer life insurance always free money?
Coverage above certain thresholds can create imputed taxable income on your W-2.
Where do I estimate take-home on the base portion?
Use the salary-after-tax calculator with your state and deferrals.
Converting Equity and Bonus to Annual Cash
Treat target bonus as probability-weighted: a 15% target paid at 80% average equals 12% of base. For RSUs, divide the grant's current fair value by the vesting years to approximate annualized equity. Add that figure to base and expected bonus, then run the total through the salary-after-tax calculator so taxes on ordinary income are visible. Do not add employer 401(k) match as spendable cash—it raises retirement wealth, not this month's rent.
Disclaimer: This article is for educational purposes only and is not tax, legal, or financial advice. Tax rules change by year, state, and individual circumstances. Confirm figures with official IRS and state revenue publications or a qualified tax professional before making withholding, relocation, or investment decisions.