3 ms·

Will startups have problems paying salaries now?

• fullshark 4y ago
  Good question and to me it seems the answer can only be yes.
• severingties 4y ago
  If the company's payroll is under the $250K FDIC insured amount, they can make payroll on Monday. If the company's payroll is like $1 million a month, maybe not.
  • jossclimb 4y ago
    I can't see many startups having that sort of salary bill, unless they are a small seed with just a few founders working on a small wage as a sacrifice for their own investment. A lot of these startups would have hired during the frothy 2021 early 2022 phase when $250k might just cover a single employee.
    • manquer 4y ago
      250k for a single employee’s mid month payroll ! That is $7.5m / year in only cash compensation!! that would be unheard of for startups who only bank at SVB, even only few blue chip CEOs will draw that much cash . Realistically 250k for 2 weeks pay probably can cover between 30-60 employees, if founders and some key senior folks can willing and are able afford to defer maybe stretch to 75.
      • jossclimb 4y ago
        ok, this is my Euro brain's fault, we have a monthly payroll.