Working at The New School

About Salary and Benefits

Note for international faculty:

New School employees, including faculty, are required to pay taxes on their income (salary and benefits). Your individual faculty income tax obligations may be influenced by a tax treaty between the United States and your country of residence. How such treaties apply depends on your visa type and individual circumstances. In addition, your benefits and retirement choices will also impact how much money you receive. These details cannot be known until the university receives your new hire paperwork. The process from the moment you sign your contract to completion of new hire paperwork can take several months. Below is a general guide to understanding the basics about “salary” and “benefits.”

Understanding Salary

There is often a significant difference between the salary stated in your contract (gross or base pay) and the money (net or “take home pay”) that will be deposited in your bank account by The New School. The New School, in processing your bi-weekly pay, makes a number of deductions (“withholding”) from your salary. This is because of both mandatory and voluntary “payroll deductions.” 

Mandatory payroll deductions include:

• Federal income tax

• State and local income taxes

• Social Security tax

• Medicare tax

• New York Paid Family Leave

Voluntary deductions include contributions to health insurance (see next page), retirement savings (see next page),and any other elected benefits, such as transportation, tuition, and legal. These amounts will also reduce your net pay.

There are many sources of information on taxes available online. A good updated source of information on taxes in the US in general is at the Tax Foundation. Many tax provider websites offer useful tax tools, such as LibertyTax, and often include basic information for understanding your payslip and the nature of deductions. This website provides information on how income tax works (including a history of the United States income tax!). And here is detailed information on completing the tax form W-4.  For international faculty, the U.S. Internal Revenue Service provides a list of frequently asked questions and information for new immigrants. (This “guru” card for the New School shows how to view and review your New School payslip.)

While these resources can be helpful in understanding complex issues, you are encouraged to consult a tax professional with any questions.

Benefits

After you have completed your new hire and payroll paperwork including tax information, you will be invited to a benefits orientation to review your benefits options including medical and retirement plans. The US system of taxes and benefits can be confusing; please take the time to read carefully the information below.

New School administrators and staff in Human Resources are prevented by law from providing you with advice on tax and benefits selections. You will be better prepared for your meetings with Human Resources if you do some work ahead of time to familiarize yourself with some basic concepts. 

Medical/Health Benefits

Residents of the United States must pay for their health care. Health insurance reduces the costs to an individual but does not eliminate them. Health insurance is generally provided by your employer and requires some cost sharing, meaning some money will be deducted from your salary as your contribution to your health insurance. The New School contracts with a large insurer, Aetna, and contributes part of the monthly “premium” that is paid for the insurance on your behalf; you must also contribute a portion of your salary to the premiums. 

The plan you choose determines the monthly costs you’ll pay and which healthcare providers’ costs are covered by insurance. Monthly premium costs can be found on the New School’s benefits website. Like income taxes, these costs are deducted from your bi-weekly paycheck.

Aetna is one of the largest health insurers in the United States and maintains a large number of providers and hospitals in the New York/New Jersey/Connecticut metropolitan area. The University offers three plans under Aetna that full-time faculty may choose from. 

Even with insurance, you may also pay some amount (the ‘co-pay’) when you use health care services. You may also have to pay co-insurance, meaning you pay a portion of the actual health services performed and the insurance company pays a portion. 

We encourage you to participate in the benefits orientation to understand our health coverage options.

The costs of the plans will vary according to your income and whether you are covering just yourself or also your family. There are many variables that affect what you will pay and what the university pays toward health benefits. You pay a portion of the cost of the insurance coverage, generally about 20-25%, while the University generally covers about 75-80%. You will see your contribution, also known as a “premium,” deducted from your bi-weekly paychecks. Please note these contributions are made before taxes are taken from your salary, meaning they reduce the amount of your salary that is subject to taxation. So, for example, if your annual salary is $70,000 and your annual health insurance premium is $8,000, the amount of your salary that will be taxed (your taxable income) would be $62,000. So while you are paying for health insurance coverage, there is a tax benefit. 

The three plans offered through Aetna provide a range of cost options and flexibility; more expensive options allow greater flexibility in available health care providers but the least expensive plan is able to meet the needs of many employees. The current cost of coverage for full-time faculty and staff can be accessed via our Human Resources benefits page.

Retirement Contributions

The New School contributes into your TIAA retirement account. Depending on your age and length of service you may be eligible for a 7 or 10% University contribution to your retirement account. The 7 or 10% contribution is a percentage of your base salary. In addition to the money the University contributes on your behalf you are also automatically enrolled to make employee contributions, which are taken as a portion of your salary. This is generally 3% of your salary and is deducted from your bi-weekly salary. You can opt out of the 3% contribution or contribute a larger or smaller percentage. If you decide to waive the automatic 3% employee contribution it will not impact the amount The New School contributes to your plan. This will be discussed during your benefits orientation. Please note that you must work at the New School for one year to qualify for the University contribution; this delay may be waived if you have worked at another US-based university for at least one year in a full-time capacity. More details will be provided at benefits orientation. For more information about the New School’s  retirement benefits, please visit the benefits website.

Benefits Eligibility

You are eligible to enroll in benefits on the first day of the month following completion of one month of employment at The New School. For example, if you start July 1, your benefits are effective August 1; if you start July 15th, your benefits are effective September 1. Please note that you must apply for the benefits you wish to be covered for within 30 days of your benefits effective date or you will have to wait until the next enrollment period,  generally held in the fall (October or November) or a coverage effective date of the following January 1st. 

Moving to New York City

We’ve compiled basic information on everyday life in New York City and guidance on  understanding and finding housing, schools, and childcare. If there is more general information you would like to know about moving to or living in NYC, please contact your dean’s office.