Job Discussion Forums

Captain Willard · Joined: 11 Sep 2010 Posts: 251

That is a false dilemma, my dear. The company doesn't need to be Saudi, just not American. That leaves many other choices for a foreign subsidiary among the nations of the world.

moomama · Joined: 30 May 2013 Posts: 10

Provided at no cost to you:

• Secure work environment at King Abdul Aziz AB, Dhahran:
This is pretty true for Saudi standards.

• Single fully furnished living quarters in an exceptionally secure, gated, guarded compound:
This is a bit skewed. This is not exceptionally secure. Then again, most Saudi compounds guarded by Saudis are rarely secure. There are manned gates and some armed guards but they are usually playing with their phones. I never felt unsafe while at the compound but I definitely was not betting on the guards or security to protect me from any attack. One recent and very serious development has been the number of teachers developing respiratory illnesses because of the mold in the building. The prevalent mold problem is undeniable. The fourth and fifth floors are not used because of mold problems. The ceilings on the 2nd floor where most of the B3H staff reside have mold stains/water stains on the ceilings. The basement’s/carpark‘s ceiling is ridiculously water damaged. Management is in denial. There is no other option for housing. If you have a sensitive respiratory system, this place is not for you.

- High speed internet service, utilities, access to gym and pool included:
The internet is pretty good but during “busy” times, it can slow down a bit. Be prepared to have colleagues who want to Skype with family members the same time you might. I never had a problem with the electricity or water. The outdoor pool is good during the warmer months. The gyms available are also pretty good. There is an indoor – bowling alley, pool, tennis court, and skating rink available. These facilities are quite nice.

- Fleet of vehicles for local transportation to include travel to the base:
This is misleading. You get assigned to a car and share it with 3 other people.

• Pre-paid airfare to and from Saudi Arabia:
As long as you finish your contract / 1 year, B3H will not charge you but every person that has left early has seen a rather large deduction from their last paychecks. B3H (and the president) is a greedy spiteful breed.

• Annual round-trip airfare to home of record:
Yup. If you work for at least six months, you get a flight home or the equivalent of it.

• Comprehensive life, health and dental insurance
Yup. Good insurance.

• In-country Defense Language Institute (DLI) training and certification:
This is tripe. They will have you sign some document that you received training. Once you receive your base pass, you will be put into the classroom.

• 25 days of paid vacation plus Saudi national holidays:
This is misleading. You do not get to choose your days off. Additionally, look up Saudi National Holidays, there aren’t many. Basically, you get 200 hours and if you finish your contract and not piss B3H off at all you will get more because of inadvertent sick days and the fact that there are more days off in a year than 200 hours covers.

B3H also offers:

• A total compensation package in excess of $90,000 USD/year (majority tax free if remaining out of the country for 330 days) consisting of the following:
$90k package? Pleeeeaaasssseee!!! Ask B3H how the breakdown works and that should be a fair assessment about the work you do and how they feel about you. The base salary is $42k.

• One year renewable contract:
B3H does not have the teaching contract at TSI guaranteed for another year. They have the contract until the end of January 2016 with the possibility of a 6 month extension.

• Overseas pay differential:
Yup. 10% of the base which is $4200 annually.

• Annual service bonus:
Yup. 8% of the base which is $3360 on your 12th paycheck. Make sure you claim exempt on that paycheck.

• Annual Cost of Living raises:
Yup. A pitiful 2% increase (not the base salary)

• Cell phone allowance and SIM card:
Yup. $50/month

• 401K with company matching contributions:
Yup. Up to 5%. First 2.5% is fully matched and the next 2.5%, B3H puts in half.

Captain Willard · Joined: 11 Sep 2010 Posts: 251

Thank you moomama for all of the details and cutting through the B.S.

The problem with the 401(k) is that it is the tax is deferred until age 59, but if one qualifies for the foreign income exclusion this money isn't taxable at all. So there is a trade-off here for a small employer contribution. It is probably still worth taking, but why not get an offer where this money comes in pocket, then put it in a Roth IRA, where the principal can always be withdrawn without penalty? [Edit to note that with the Roth IRA the earnings would accrue tax free, while with the 401(k) the earnings are taxable when withdrawn.]

veiledsentiments · Joined: 20 Feb 2003 Posts: 17644 Location: USA

hash · Joined: 17 Dec 2014 Posts: 456 Location: Wadi Jinn

Captain Willard · Joined: 11 Sep 2010 Posts: 251

This proves my point about the tax liability trade-off for the 401(k) likely out weighs the benefit of the employer contribution.

johnslat · Posted: Mon Feb 09, 2015 3:47 pm Post subject:

Dear Captain Willard,

"I confused federal income tax withholding with the FICA deductions . . ."

That's rather a glaring, basic error, which, to my mind at least, somewhat tarnishes your claims of being well-studied in this area.

But let every poster decide for him/herself.

Regards,
John

Captain Willard · Joined: 11 Sep 2010 Posts: 251

Johnny, me old son,

If not working for an American company, there is no difference as NOTHING is deducted for Uncle Sam, which was my main point.

Taking a quote out of context is always great fun, eh?

As you are not here in the Gulf at present, and presumably retired, every poster can decide about the merit of your contribution as well.

C. W.

johnslat · Posted: Mon Feb 09, 2015 7:44 pm Post subject:

Dear Captain Willard,

"As you are not here in the Gulf at present, and presumably retired, every poster can decide about the merit of your contribution as well. "

Retired? Not at all. I'm currently the coordinator of the ESL Program at Santa Fe Community College.

I don't see, however, how my being or not being in Saudi Arabia is relevant to your not knowing what FICA meant, but I'm quite willing to let other posters decide. Smile

Regards,
John - not your son, by the way, but admittedly old.

Captain Willard · Joined: 11 Sep 2010 Posts: 251

Johnny, me old son,

If not working for an American company, there is no difference as NOTHING is deducted for Uncle Sam, which was my main point.

Taking a quote out of context is always great fun, eh?

As you are not here in the Gulf at present, and presumably retired, every poster can decide about the merit of your contribution as well.

C. W.

johnslat · Posted: Mon Feb 09, 2015 8:09 pm Post subject:

Dear Captain Willard,

"As you are not here in the Gulf at present, and presumably retired, every poster can decide about the merit of your contribution as well. "

Retired? Not at all. I'm currently the coordinator of the ESL Program at Santa Fe Community College.

I don't see, however, how my being or not being in Saudi Arabia is relevant to your not knowing what FICA meant, but I'm quite willing to let other posters decide. Smile

Regards,
John - not your son, by the way, but admittedly old.

Captain Willard · Joined: 11 Sep 2010 Posts: 251

Johnny, me old son,

So when you were in the Gulf, did you work for an American company and pay taxes (general withholding or FICA) to Uncle Sam?

Riddle me this, if you are admittedly old, (a Vietnam veteran), but still working, why should anyone follow your advise on investing for retirement?

Maybe financial planning is actually about crunching the numbers, and not lexis?
Laughing

C. W.
ROTFLMAO!

johnslat · Posted: Mon Feb 09, 2015 10:15 pm Post subject:

Dear Captain Willard,

But I am not advising about investing for retirement; I cautioned that taking advice about such matters from someone who didn't even know what FICA is seemed a bit risky to me. Very Happy

No, I didn't work for an American company in Saudi, but I have paid taxes in the US.

As for my still working, it isn't at all out of necessity; it's because I very much enjoy what I do.

When that's the case, why would anyone want to stop doing that?

Maybe financial planning involves knowing the basics about the IRS. Very Happy

Regards,
John

Captain Willard · Joined: 11 Sep 2010 Posts: 251

Now Johnny, me old son,

I saw a video clip of Senator McCain talking about the crisis in Ukraine. He misspoke and said we should give weapons to Russia when he meant to say Ukriane. Now someone could use that quote to twist his clear meaning around from the rest of the interview, but that person would be considered something less than credible. I knew exactly what the FICA deductions were, and they were accurately stated by percentage. Are you questioning those numbers?

Still no contribution from you about the contract on offer from this company, just an admission that you never took a similar contract or worked for an American employer in the Gulf and paid these taxes yourself, whatever they are labeled. The fact that you are still paying taxes in the U.S. in your present job doesn't address this situation. I and another contributor have made it clear that readers should seek qualified professional advice on financial matters.