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Maybe this is a dumb question, but if you only deduct part of their salary in the first year, what happens if you have a software developer for several years?
by EFreethought 1y ago
Maybe this is a dumb question, but if you only deduct part of their salary in the first year, what happens if you have a software developer for several years?
And then what happens after five years if they are still around?
- stonemetal12 1y agoAfter five years you are back to the status quo. It is a short term problem, long term there is no difference between the two. It primarily hurts young companies that don't take VC money, and shortens the runway of those who do.
- sarchertech 1y agoIt is much worse for young companies for sure, but it’s not great for any company. You’re forgoing returns on .1 * salary * tax rate for 5 years, .2 * salary * tax rate for 4 years… for every software dev in the company.
- lsaferite 1y agoIt also affects hiring growth because every net new dev starts a new 5-year runway.
- eadmund 1y ago> Maybe this is a dumb question, but if you only deduct part of their salary in the first year, what happens if you have a software developer for several years? Not dumb at all! In the second year, you get to deduct ⅕th of the previous year’s salary and ⅕th of the current year’s salary; likewise, in the third year you get to deduct ⅕th of the first year’s salary, ⅕th of the second year’s salary and ⅕th of the third year’s salary. The key thing is that in the fifth and following years, a business would deduct a fifth of each of the previous five year’s engineering payrolls. This is not great for a growing business, but it’s murder on a startup trying to grow from zero.
- chermi 1y agoThus firmly placing this in the regulatory capture category.