Provided by: Jennifer Kirschenbaum, Esq.
January 30, 2024
Question:
Hi Jennifer,
My new job is paying 50% of collections. That sounds pretty good. Anything I should consider before I take it?
Thanks,
Dr. F
Answer:
True, 50% is a number that usually is associated with a high rate of pay. But, the devil Is in the details.The definition of collections is going to make her break your compensation structure. Typically, collections are paid on a "net" collection basis. How the "net" is defined, will really dictate your take home pay. The "net" means deductions, which usually includes as standard course, refunds, repayments, processing fees, cost of supplies (including consumables) associated with your services. Some employers will bake in corporate expense or management fees, general overhead, you name it....My main concern in assessing your compensation offer is understanding what that "net" means. Let’s start there to make sure you have an agreement on compensation, and then we can move onto the other terms of employment. So, it's not that I am not excited for you, and, yes, congratulations on the offer, however, it's time to dig in.
My new job is paying 50% of collections. That sounds pretty good. Anything I should consider before I take it?
Thanks,
Dr. F
Answer:
True, 50% is a number that usually is associated with a high rate of pay. But, the devil Is in the details.The definition of collections is going to make her break your compensation structure. Typically, collections are paid on a "net" collection basis. How the "net" is defined, will really dictate your take home pay. The "net" means deductions, which usually includes as standard course, refunds, repayments, processing fees, cost of supplies (including consumables) associated with your services. Some employers will bake in corporate expense or management fees, general overhead, you name it....My main concern in assessing your compensation offer is understanding what that "net" means. Let’s start there to make sure you have an agreement on compensation, and then we can move onto the other terms of employment. So, it's not that I am not excited for you, and, yes, congratulations on the offer, however, it's time to dig in.
