Hi, We are conducting an economic impact study for the US at a state level. We have a few questions on employee compensation. When entering employee compensation into a scenario for analysis (using state-level data): 1.Should we use the pre-tax or post-tax employee compensation? 2.Should we use the state wage or the federal wage from employee W2s? a. The tax structure for every state is different. For example, some states include all compensation and benefits in the taxable base (like 401k, tuition, gym membership, etc.), while others limit what is taxable. 3.Does IMPLAN account for the differences in tax structure across different states in the US? a. For example, the same number of employees may generate the same amount of output in FL or PA, but because of differences in tax structures, state wages across the two states are very different (whereas their federal wages are the same). Thanks.
Please sign in to leave a comment.