Accounting and Finance Salaries in New York and Florida

Salaries within two distinct geographic regions often vary substantially. Employers within a market economy must compete for talent and labor in the same manner in which they compete for customers. Employers must therefore entice perspective candidates with a compelling value proposition relative to peers. This proposition often includes aspects such vacation, retirement plans, and special rights and privileges. A major component of the ability of a company to attract and retain talented candidates is salary. Two economic forces heavily influence pay differences within respective regions of the country. One of which is cost of living within the particular area. Cost of living in particular has many variables that comprise it (Dohrn, 1996). Aspects such as living expenses, taxes, inflation, and transportation are all components within the cost of living calculation. A higher cost of living often demands a salary premium when compares to other, less expensive areas. The second economic influence that determines salary is available labor supply. Often the sheer rareness of a skill often causes employers to bid for the individual's services. Much like supply and demand in an economic context, a shortage of labor often corresponds with an increase in price. These two influences have a strong impact on wages and the subsequent compensation an employee receives. This document with discuss the varying salaries of a Treasury Analyst with respect to the New York and Florida regions. The discrepancy is large with a Treasury Analyst in New York commanding a salary of $150,000 as compared to $60,000 in Florida.

When looking salaries, one must first be cognizant of the cost of living within a particular area. Generally speaking cost of living varies dramatically by state. For example, New York and California have historically been the most expensive states to live in. Meanwhile areas such as South Dakota and Texas have been cheaper. The economic e influence of cost is a strong driver of salaries within a region. Employers must attract candidates with a salary that compensates for the higher cost of living associated with the region. Otherwise, candidates would not accept an offer due primarily to the fact that they would not be able to affordable live in the area. The cost of living is often derived from structural aspects embedded within the state, or region (Finley, 1973). Aspects such as taxation, infrastructure, and political affinity can have a large impact on the cost of living. Taxation is a very large proponent of the cost of living. The federal government taxes wages and in some instances states tax income as well. This state tax in conjunction with sales taxes on consumption can be particularly burdensome for candidates. New York for instance, has fairly high tax rates in relation to Florida. In fact Florida has no state income tax at all. Employers in New York for a Treasury Analyst must therefore compensate for the state taxes that will be levied against potential candidates. Employers in Florida however do not have such a problem.

Cost of living is also correlated to the weather. New York has been known to experience harsh winters, whereas Florida has been known to experience very violent hurricanes. Each of these weather phenomenon impose a cost on employees that must be compensated for within their respective salaries. New York will undoubted have much higher energy costs during the winter months. Maintenances of frozen pipes and properly insulated homes can prove costly. The added time and inconvenience of shoveling snow or increased possibility of accidents are costs as well. The purchase of maintenance of winter clothes and accessories also cost. Many of these costs are not associated with a Treasury Analyst position in Florida. In addition, these costs often rise in line with inflation. In the United States, inflation has averaged roughly 2% to 3% a year. As these costs continue to rise, so too will the demand in increased salary to compensate for the difference.