Retired today

[snapperdude]

Thanks! Money from unemployment insurance are not free: this is a small portion of tax I paid during my long working career, mostly in California.

Employees don't pay unemployment tax in California.

 

[Alex The Great]

Employees don't pay unemployment tax in California.

Yes that's correct unemployment tax is paid by employers in California. But I consider it as an indirect tax on employee because the money employer spend on UI would come to employee otherwise. Like employer's part of health insurance, it is just a way to hide the fact that all these funds actually subtracted from employee's total compensation.

 

[Gumby]

.... But I consider it as an indirect tax on employee because the money employer spend on UI would come to employee otherwise.....

I have serious doubts about employers handing over their portion of the taxes to the employees if they didn't have to pay them.

 

[aaronc879]

Yes that's correct unemployment tax is paid by employers in California. But I consider it as an indirect tax on employee because the money employer spend on UI would come to employee otherwise. Like employer's part of health insurance, it is just a way to hide the fact that all these funds actually subtracted from employee's total compensation.

You can't seriously think that is true? It would not go to the employees, it would go to the owners or other high-end people in almost every case.

 

[Alex The Great]

I have serious doubts about employers handing over their portion of the taxes to the employees if they didn't have to pay them.

Well, competition is everything. Ideally employer want everyone to work for free. This business is cost efficient and shareholders would be very happy.
But in order to compete with others, employers have to come up with something to attract people.

 

[TickTock]

Thanks for your support!
Feel a bit odd about all this, but I think I win may not be that much financially but just because I don't have to wait and tell a long and painful story why I want to retire
But the trend I see is quite disturbing: nobody want to see 50+ folks at engineering positions.

Don't be too sure of that. DW took a package from Megacorp last year. Megacorp has had multiple packages over the last several years (let's get rid of the experienced employees; I don't see *how* that could go wrong!). Many of the engineers who took packages are now employed by Megacorp... as contractors... presumably for more money.

I'm not suggesting for a second that you w*rk if that's not what you want/need to do. Just saying there are probably contract opportunities available that you may not be aware of. Google "contract engineering firms" (add in your specific expertise) if you're interested.

 

[JBTX]

Yes that's correct unemployment tax is paid by employers in California. But I consider it as an indirect tax on employee because the money employer spend on UI would come to employee otherwise. Like employer's part of health insurance, it is just a way to hide the fact that all these funds actually subtracted from employee's total compensation.

From an economics perspective generally such employee related costs borne by the employer are considered both income/benefit to the employee, and an offsetting expense. Similar assumption for the employer paid side of fica - consider it income and expense to employee.

 

[Alex The Great]

Don't be too sure of that. DW took a package from Megacorp last year. Megacorp has had multiple packages over the last several years (let's get rid of the experienced employees; I don't see *how* that could go wrong!). Many of the engineers who took packages are now employed by Megacorp... as contractors... presumably for more money.

I'm not suggesting for a second that you w*rk if that's not what you want/need to do. Just saying there are probably contract opportunities available that you may not be aware of. Google "contract engineering firms" (add in your specific expertise) if you're interested.

TickTock, thanks this is a quite interesting observation.
But in the field I spent my career, contractors are rare. I met may be one or two for the last 20 years.
Don't get me wrong: full time regular jobs are available for 50+ folks. Actually I always managed to find a job after previous layoffs. But the problem is it did not last long at any of these positions because of the high compensation tied to limited responsibilities.