I make pretty good money as a consultant. Last year I had 180 hours of saved vacation time (4.5 weeks). I gave up 115.5 hours of that on January 1 because I didn't use it. I expect I will lose a similar amount on next January 1st. I did get 6 federal holidays off. I used a bit of vacation to also take the day after Thanksgiving, the day before Christmas, and New Year's Eve off.
I paid $8400 in insurance premiums for my insurance. I also added $5200 in pretax to my HSA account which I used.
I paid about 30% to taxes.
I'm not complaining. I'd just like to point out that my high salary (which is not > $200,000) comes with some costs.
I've seen mid-level tech jobs in London banks for £146k which come with 34 days off including state holidays like new years day, christmas, etc
£146k for a full time contractor on 226 days a year isn't that much at all - £650 a day, which is in the "Senior developer" range [0]
With 30% tax in the US and the cost of health insurance, that would be $68,400
For a staff employee on £146k (which is quite achievable in finance), taxes would be 39.5%, or $79k in tax [1] (there's also local property tax, but that's in the ballpark £1k-3k a year depending on the size of your house). Tax could be potentially lower as a contractor if you're clever about distributing your income, but I know they've been clamping down on some avoidance schemes.
No idea what a HSA account is, I guess some form of pension plan? That tends to come off pre-tax.
How is it being killed off? You might have to pay a bit more tax (either before as part of employer NI, or after), but £650/day isn't an abnormally high rate.
I was looking at the following job last month which was advertised at £200k
Software Engineer needed for award winning tech focused hedge fund run by passionate computer scientists. Sells Flexible hours/work options Technologists only report to technologists Programmers treated as top commodity so ‘spoiled’ Very friendly/collaborative people Cutting-edge tech Multiple greenfield projects No red tape Beautiful offices Small team size in a growing company so able to make a significant impact Role Build and optimise new cutting-edge platforms to back-test, research & trade quantitative strategies Predict models to automatically invest, design and develop trading platforms Performance optimisation & building robust intelligent solutions to problems
And this one at £150k
My client is a specialist quantitative asset management company that takes pride in having a distinct culture and approach to working with technology. With a tech driven and relaxed feel in the heart of London. They are looking for an outstanding Low-latency Network Engineer. The successful candidate will be a key engineer in the company and will be designing, building and managing critical network infrastructure and automating all work.
Now sure, not everyone is paid those, but not everyone is paid $500k in america either. trcollinson was a on a gross of less than $200k as a contractor. Based on his hours that's $800 a day, or £586 a day, or £660 a day if you include Employer NI.
London is hugely expensive, so tech salaries should be higher there to attract workers.
Also, finance generally pays better than other industries (although banking in Netherlands pays typically low-average); but trading and investment companies pay above average.
Yes, you can earn $200k in EU. But usually on very senior role/as contractor while in US you can get that kind of offer from FANG just out of university.
I would assume that people who can get $200k in EU could get a ton more in US
>No idea what a HSA account is, I guess some form of pension plan?
I think the OP meant Health Savings Account, which lets you put money in pre-tax for certain medical expenditures. There is a limit and IIRC you lose what you don't spend. It's good if you have predictable costs, or you're saving to do an expensive procedure (friends have done this for lasik), etc. You pay the bill then submit a receipt to get reimbursed out of the account.
In the US these are now termed Flexible Spending Accounts, with subcategories of Health, Dependent Care, etc.
No, FSA and HSA are similar but different. They both exist, the use-it-or-lose it variety you're talking about is called an FSA. HSAs, on the other hand, can carry over year to year, and doubles as a source of income in retirement.
The downside is you must have high deductible plan to contribute to an HSA -- the idea is that you put aside enough money to cover the high deductible just in case, but are now motivated to price comparison shop for MRIs and whatnot, since any unspent money is now yours to keep.
I am a W2 employee for a consulting firm. They pay me a salary with some benefits and some vacation time and bill be out to clients.
I'd say it's a cultural thing why we don't use it. Working hard and making big money is the dream. I'm not saying my company forces me to not take the vacation time. Heck they try to tell us all to use it more! (PTO is a liability on the books, FYI). But culturally, it's just not a priority (as in our countries culture, not the company itself). I realize it makes no sense. I need to make it more of a priority. My original point is my friends who are ex-pats on the EU seem to have a culture of using that time being more important than working.
Edit: I'm not sure why I'm being down voted. I'm mostly sharing what I see and feel. Your milage definitely may vary and I hope it does!
Your company at the end of the day doesn't care about you, those 5 weeks you could've spend on a trip doing a hike or just chill on the beach. That is what you'll remember later in life. That deadline you crushed, your boss enjoyed but won't be remembered in a few years, and if your "team needed you" comes up, your company overworks you and needs to hire additional staff.
I don't disagree. And I mean this much more generally, I have worked quite a long time for quite a lot of companies. The amount of PTO that is given up, which I was privy to, was staggering.
The interesting thing is I used to try to force people who worked for me to take more time off and they would complain. I think in many ways it was the example I set, which was bad, of always working. It's a regret I honestly have. I'm also happy now that I am just an individual contributor. I don't have to try to change that culture anymore. I only need to change me.
I paid $8400 in insurance premiums for my insurance. I also added $5200 in pretax to my HSA account which I used.
I paid about 30% to taxes.
I'm not complaining. I'd just like to point out that my high salary (which is not > $200,000) comes with some costs.