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I would hope they have high caliber programmers and ops people, considering the problem space. Those don't come cheap. Can anyone comment on tax overhead for t

I would hope they have high caliber programmers and ops people, considering the problem space. Those don't come cheap. Can anyone comment on tax overhead for the company in SV? What net salary do 250k amount to? (net as in minus the tax for the company, not the employees income tax)

jedberg 10y ago
It depends a lot on corporate structure and actually HQ address for tax filling. Each city has their own business license rates and deductions. And some cities (like SF) have extra taxes per employee. Their website lists their HQ as SF, but it would be impossible to know from the outside what their exact tax situation would be. I guess my point is though from a company perspective not much more than anywhere else. The biggest cost to a company here is competing on wages.
mikeyouse 10y ago
I've worked in finance for a medium-sized SF company and a small (~50 employee) startup in SV. Our standard assumption for 'all-in' employee cost was to add an additional 30% on top. For highly paid employees, this actually gets reduced a bit since FICA cuts off at $118k. To get to $250k total outlay with an admittedly outdated spreadsheet, the salary would have to be $200k (benefit load of only 26%). Of course this depends greatly on PTO, Health Care, Worker's Comp, etc.
ryanobjc 10y ago
There isn't as much as people bitch about, generally speaking you have a few items: - FICA payroll tax - this is US wide, so not really more expensive in CA. - CA state payroll tax, this isn't that expensive, just a few percent. - Workers comp, could be cheaper in other states, but coders/office workers have cheap workers comp. - Health insurance, maybe a bit more expensive in CA Basically hiring people isn't expensive because of the taxes, but because of benefits and just generally having a higher income rate. In my experience it was about 10%, and if you add health care another 10-15% so about 25% total overhead.
- bryanlarsen 10y ago
  Also office space: 100 - 200 sq.ft. per employee * $75/sq.ft. in SF -> $7k5 - $15k per employee.
  - ryanobjc 10y ago
    That's like for the MOST expensive office space in SF though. Also that's PER YEAR, not per month. I once rented out office space in SOMA, and it was more like $18 sqft/year. It was cheap and in a shitty place, but still SOMA.
    - bryanlarsen 10y ago
      That's average price according to http://fortune.com/2016/01/11/san-francisco-office-rent/ http://fortune.com/2016/01/11/san-francisco-office-rent/

jedberg 10y ago

It depends a lot on corporate structure and actually HQ address for tax filling. Each city has their own business license rates and deductions. And some cities (like SF) have extra taxes per employee. Their website lists their HQ as SF, but it would be impossible to know from the outside what their exact tax situation would be. I guess my point is though from a company perspective not much more than anywhere else. The biggest cost to a company here is competing on wages.

mikeyouse 10y ago

I've worked in finance for a medium-sized SF company and a small (~50 employee) startup in SV. Our standard assumption for 'all-in' employee cost was to add an additional 30% on top. For highly paid employees, this actually gets reduced a bit since FICA cuts off at $118k. To get to $250k total outlay with an admittedly outdated spreadsheet, the salary would have to be $200k (benefit load of only 26%). Of course this depends greatly on PTO, Health Care, Worker's Comp, etc.

ryanobjc 10y ago

There isn't as much as people bitch about, generally speaking you have a few items: - FICA payroll tax - this is US wide, so not really more expensive in CA. - CA state payroll tax, this isn't that expensive, just a few percent. - Workers comp, could be cheaper in other states, but coders/office workers have cheap workers comp. - Health insurance, maybe a bit more expensive in CA Basically hiring people isn't expensive because of the taxes, but because of benefits and just generally having a higher income rate. In my experience it was about 10%, and if you add health care another 10-15% so about 25% total overhead.

bryanlarsen 10y ago
Also office space: 100 - 200 sq.ft. per employee * $75/sq.ft. in SF -> $7k5 - $15k per employee.
- ryanobjc 10y ago
  That's like for the MOST expensive office space in SF though. Also that's PER YEAR, not per month. I once rented out office space in SOMA, and it was more like $18 sqft/year. It was cheap and in a shitty place, but still SOMA.
  - bryanlarsen 10y ago
    That's average price according to http://fortune.com/2016/01/11/san-francisco-office-rent/ http://fortune.com/2016/01/11/san-francisco-office-rent/