Word: pretax
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...Viewers like the service, paying between $3.50 and $7 per film. The studios get 50% to 60% of that, but the remainder adds to FastWeb's impressive annual revenue per user of $845. That's more than twice the $385 per user at Telecom Italia. The company forecasts a pretax loss of around $300 million for 2003, but Scaglia expects to break even in 2005. He's proving that it can pay to be a technology maverick--even in the post-dotcom era. --By Mark Halper
...disasters never happened. "We knew we'd survive," says Dhamija, e-bookers' founder and CEO. "The question was whether we would become No. 1 or No. 2." Today e-bookers is Europe's largest Internet travel agency and the first (as of May) to turn a pretax profit. It was also the London Stock Exchange's second-brightest star last year, with share prices...
MAXIMIZE FLEXIBLE-SPENDING DOLLARS. Here's a nifty loophole pointed out by Nancy Collamer, author of The Layoff Survival Guide: you can be paid the full amount of your annual, planned contribution to a pretax flexible-spending account for health care even before you have made the full annual contribution. So if you're worried about getting laid off, the usual December rush to the doctor may need to come early. After a layoff, you can make claims for only the amount that has accumulated in the account...
...ERSAs (employer retirement savings accounts) would be employer-sponsored workplace accounts. Employees could kick in as much as $12,000 a year in pretax money (the best kind) or $14,000 a year if they're age 50 or older. Taxes would be due upon withdrawal, either after age 59 1/2--as with today's 401(k)s--or perhaps earlier...
When employees figure out that they'll lose any pretax money they set aside but don't spend, most simply move on. Who needs to roll the dice on something so unknowable as how often you'll get sick next year? And it's a slap in the face that your employer gets to keep the leftovers. We're not talking big bucks--roughly $20 a year goes unused in the typical health-care or dependent-care FSA. The real crime is that eligible workers grossly underuse fsas out of fear that they will overguesstimate expenses. Drop...