Maybe if you're the janitor, but based on the quip about the salaries Stripe pays, the parent is presumably looking at this from a developer's perspective. That's a payout of around $73,000.
If you are handed $73,000 and still need to frantically look for a new job, something strange is going on.
i’m not referring to running out of money, just the idea that it’s harder to interview during the time around the holidays and immediately after, and we are in a period where these layoffs are macro driven so lots of people are competing against you for the same roles
If you're not out of money, why the frantic search? It isn't going to sustain you forever, but if it takes you six months to find a new job... oh well?
You've got taxes on that so 40% and then health insurance at Cobra rates. Granted it looks like they said they will pay that for 6 months. Not sure if that is taxable as well also not sure what the individual contributions are.
> You've got taxes on that so 40% and then health insurance at Cobra rates.
Your taxes would only be 40% (actually 47%) if you make beyond $500k a year. Cobra rates are quite affordable. I was on Cobra when I was laid off due to covid, and it was $550 a month for top tier healthcare.
The tax rate is only that high for amount earned after $500k too. And only for those in a few states like California.
$550 for gold level insurance is expected for someone young, which I guess you are.
You can ballpark almost anyone’s premiums based on the figures in link below. I would use Omnia Gold or Omnia Silver HSA numbers, and plus or minus 20% for your state.
If it's a one time payout (to be clear, I'm not that will be the case here? It was for me the only time that I was laid off), I think the withholding would be calculated as though that single payment were a regular salary extrapolated to the entire year. This is similar to what happens if you receive a bonus; to compute the withholding they assume your annual salary is $BONUS * $PAY_PERIOD. So you'd likely be taxed at a much higher rate on that single payment than you would be amortized over a year like a salary is.
You'd get that withheld money back after filing taxes, but most people who are laid off would prefer to have that money now.
If Stripe is making regular salary-like payments instead of one lump sum, then the taxes would be pretty much the same as always.
> Cobra rates are quite affordable. I was on Cobra when I was laid off due to covid, and it was $550 a month for top tier healthcare.
Those two statements are in odds with one another. $550 is quite a large sum of money to put out each month, particularly when you don't have an income.
Yes, you should have quite a bit of cash as an emergency fund. There are government subsidies available for health insurance, but they phase out if you earn more.
Generally, decent insurance costs anywhere from $400 to $1,200 per month, depending on age of insured, plus up to $9k out of pocket maximum for individual and $18k for families, per calendar year.
So to adequate insure one’s self for healthcare expenses, you would need $18k or $36k for out of pocket expenses (since things can happen at end of calendar year), plus $400 to $1,200 per person per month minus any premium tax credits. For a young family, I would guesstimate $24k to $30k per year in premiums minus any tax credits.
Basically, be poor enough to qualify for free healthcare, or earn enough to be able to spend a few tens of thousands of dollars for a healthcare emergency, but try not to be inbetween.
> I thought the open enrollment period was already over for HealthCare.gov. Can I still enroll?
> Yes, if you have just lost your health insurance, you are eligible for a 60-day special enrollment period. You can work with an enrollment assister, an insurance agent, or use HealthCare.gov to enroll in a new insurance plan. You may also qualify for a special enrollment period if you have experienced a life event such as moving, getting married, having a baby, or adopting a child.
You're not wrong that it is strange that we would force one to be completely uprooted from their home only because they didn't have a job for a few months.
If you are handed $73,000 and still need to frantically look for a new job, something strange is going on.