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Benefits in Software Development
- 1. Benefits
- 2. Benefits Standard ● Health ● Dental ● Vision ● HSA ● 401k ● 401k Matching (2-6%) ● Bonus (5-30%) ● PTO ● Raises Non-Standard ● Stock Purchase ● Stock Options ● Reserve Stock Units ● Stock ● Sign On Bonus ● Long-term Incentive ● Spot Bonus ● Pension ● Unlimited PTO
- 3. Medical Insurance ● *66.5% of all Bankruptcies ● Health: $400 - $2,000 ($560 National Avg) ● Dental: $10 - $100 ● Vision: $10 - $100 ● HSA/ FSA * https://www.cnbc.com/2019/02/11/this-is-the-real-reason-most-americans-file-for-bankruptcy.html
- 4. 401k ● Retirement Savings Plan ● Investment ● Tax Breaks ● Matching (2 - 6 %) ● Take it with you (IRA)
- 5. Bonus ● Yearly, sometimes paid quarterly ● 5 - 30% ● Performance Based ● * 10% is good, 15% is excellent ● In Offer * https://www.zippia.com/advice/average-bonus- statistics
- 6. Paid Time Off (PTO) ● 2 weeks minimum ● Based on Seniority ● You can do better... ● Unlimited?! ● In Offer https://www.zenefits.com/workest/average-pto-in-2022
- 7. Raises ● Not in Offer ● Company Specific ● Inflation! ● ** Average is 3 - 5% ● No raises this year? * https://www.thebalancemoney.com/u-s-inflation-rate-history-by-year-and-forecast-3306093 ** https://www.indeed.com/career-advice/pay-salary/what-is-a-reasonable-raise
- 8. Employee Stock Purchase Plan ● ESPP ● Payroll Deduction ● Reduced Price ● IRS Limits to $25k ● * Average is 5-15% * https://www.cordantwealth.com/espp/
- 9. Stock Options ● Upfront or vested ● In Offer ● Private Companies ● IPO or Special Occasions ● Worth zero or millions
- 10. Reserve Stock Units ● Higher Level ● In offer ● Vested ● Windowed ● Minimum price ● Become Stock
- 11. Stock ● Executives ● In offer ● Vested
- 12. Sign On Bonus ● Depends... ● Cash for becoming an employee ● * $5k - $60k * https://www.hackreactor.com/blog/signing-bonuses-for-software-engineers
- 13. Long Term Incentive (LTI) ● Please don’t quit... ● Vesting in years (1-4) ● Cash or Equity ● Special Employees
- 14. Spot Bonus ● Instant Cash ● Special Projects ● Exceptional Efforts
- 15. Pensions ● Almost non-existent ● Non-software companies ● Union ● Up to 80% of Salary
Editor's Notes
- A health savings account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a high-deductible health plan (HDHP).[1][2] The funds contributed to an account are not subject to federal income tax at the time of deposit.[3] Unlike a flexible spending account (FSA), HSA funds roll over and accumulate year to year if they are not spent. HSAs are owned by the individual, which differentiates them from company-owned Health Reimbursement Arrangements (HRA) that are an alternate tax-deductible source of funds paired with either high-deductible health plans or standard health plans. In the United States, a flexible spending account (FSA), also known as a flexible spending arrangement, is one of a number of tax-advantaged financial accounts, resulting in payroll tax savings.[1] One significant disadvantage to using an FSA is that funds not used by the end of the plan year are forfeited to the employer, known as the "use it or lose it" rule. Under the terms of the Affordable Care Act however a plan may permit an employee to carry over up to $550[2] into the following year without losing the funds but this does not apply to all plans and some plans may have lower limits. The most common type of flexible spending account, the medical expense FSA (also medical FSA or health FSA), is similar to a health savings account (HSA) or a health reimbursement account (HRA). However, while HSAs and HRAs are almost exclusively used as components of a consumer-driven health care plan, medical FSAs are commonly offered with more traditional health plans as well. In addition, funds in an HSA are not lost when the plan year is over, unlike funds in an FSA.[needs update] Paper forms or an FSA debit card may be used to access the account funds.
- In the United States, a 401(k) plan is an employer-sponsored, defined-contribution, personal pension (savings) account, as defined in subsection 401(k) of the U.S. Internal Revenue Code.[1] Periodical employee contributions come directly out of their paychecks, and may be matched by the employer. This legal option is what makes 401(k) plans attractive to employees, and many employers offer this option to their (full-time) workers. There are two types: traditional and Roth 401(k). For Roth accounts, contributions and withdrawals have no impact on income tax. For traditional accounts, contributions may be deducted from taxable income and withdrawals are added to taxable income. There are limits to contributions,[2] rules governing withdrawals and possible penalties. The benefit of the Roth account is from tax-free capital gains. The net benefit of the traditional account is the sum of (1) a possible bonus (or penalty) from withdrawals at tax rates lower (or higher) than at contribution, and (2) the impact on qualification for other income-tested programs from contributions and withdrawals reducing and adding to taxable income, minus the consequences of capital gains being taxed at regular income rates.[3]
- An employee stock purchase plan (ESPP) is a company-run program in which participating employees can purchase company stock at a discounted price. Employees contribute to the plan through payroll deductions which build up between the offering date and the purchase date. At the purchase date, the company uses the employee's accumulated funds to purchase stock in the company on behalf of the participating employees.1
- A stock option (also known as an equity option), gives an investor the right, but not the obligation, to buy or sell a stock at an agreed-upon price and date. There are two types of options: puts, which is a bet that a stock will fall, or calls, which is a bet that a stock will rise. Because it has shares of stock (or a stock index) as its underlying asset, stock options are a form of equity derivative and may be called equity options. Employee stock options (ESOs) are a type of equity compensation given by companies to some employees or executives that effectively amount to call options. These differ from listed equity options on stocks that trade in the market, as they are restricted to a particular corporation issuing them to their own employees.