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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 t

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.

shagie 4y ago
> and then health insurance at Cobra rates You can get health insurance from healthcare.gov Granted not California, but the federal bit is the same - https://oci.wi.gov/Documents/Consumers/HealthInsuranceLostCoverageFAQs_Consumer.pdf https://oci.wi.gov/Documents/Consumers/HealthInsuranceLostCo... > 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.
- theGnuMe 4y ago
  True, you'd have to run the numbers to see if it makes sense on a case by case basis.
Manuel_D 4y ago
> 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.
- lotsofpulp 4y ago
  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. https://www.state.nj.us/dobi/division_insurance/ihcseh/ihcrates.htm https://www.state.nj.us/dobi/division_insurance/ihcseh/ihcra...
- iterati 4y ago
  > 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.
  - lotsofpulp 4y ago
    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. https://www.healthcare.gov/glossary/premium-tax-credit https://www.healthcare.gov/glossary/premium-tax-credit 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.
    - theGnuMe 4y ago
      Try making your coffee at home. That’ll help.
      - lotsofpulp 4y ago
        I had to cut down to just tap water. (I actually do not have any compulsion to drink coffee, or anything much other than tap water). On a serious note, I cannot blame many young people for eschewing forming families of having kids when faced with the numbers I quoted.
  - ghaff 4y ago
    Basically Cobra is whatever you were already paying plus whatever the employer contribution was. Obviously family plans etc. will be considerably higher.
- mosburger 4y ago
  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.
L_Rahman 4y ago
Stripe is paying for health insurance over that time too.

shagie 4y ago

> and then health insurance at Cobra rates You can get health insurance from healthcare.gov Granted not California, but the federal bit is the same - https://oci.wi.gov/Documents/Consumers/HealthInsuranceLostCoverageFAQs_Consumer.pdf https://oci.wi.gov/Documents/Consumers/HealthInsuranceLostCo... > 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.

theGnuMe 4y ago
True, you'd have to run the numbers to see if it makes sense on a case by case basis.

Manuel_D 4y ago

> 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.

lotsofpulp 4y ago
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. https://www.state.nj.us/dobi/division_insurance/ihcseh/ihcrates.htm https://www.state.nj.us/dobi/division_insurance/ihcseh/ihcra...
iterati 4y ago
> 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.
- lotsofpulp 4y ago
  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. https://www.healthcare.gov/glossary/premium-tax-credit https://www.healthcare.gov/glossary/premium-tax-credit 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.
  - theGnuMe 4y ago
    Try making your coffee at home. That’ll help.
    - lotsofpulp 4y ago
      I had to cut down to just tap water. (I actually do not have any compulsion to drink coffee, or anything much other than tap water). On a serious note, I cannot blame many young people for eschewing forming families of having kids when faced with the numbers I quoted.
- ghaff 4y ago
  Basically Cobra is whatever you were already paying plus whatever the employer contribution was. Obviously family plans etc. will be considerably higher.
mosburger 4y ago
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.

L_Rahman 4y ago

Stripe is paying for health insurance over that time too.