The Shift to Employee-Sponsored Benefits

Back in February I wrote about the good old days when employers would lay off non-essential or excess workers in order to remain viable.¹  Another trend I see is that employers are off-loading benefits onto their employees.

For example, fifty years ago workers could retire on the company’s pension after working there for 20 or 30 years.  Now, workers are expected to set aside some earnings for retirement in a 401(k)² or 403(b)³.  The employer might contribute a matching benefit in which they contribute 4% of what each employer contributes.

What’s next?  Health insurance.  Employees now can contribute to a Health Savings Account (HSA)⁴ with pre-tax dollars.  Plus, earnings (if any) also are tax free.  Even withdrawals for qualified expenses is free of taxes.  And if you live to be 65 years old, you can withdraw funds for any reason without penalty.  Here’s the thing – the HSA is available only when choosing a (cheap) high deductible health plan (HDHP)⁵.  Hence, it seems a most appropriate replacement for a retirement savings for young, healthy professionals.

What’s left?  Perhaps we’ll see Tuition Saving Accounts.  Although by then perhaps most of the workforce will be replaced by robots and AI.

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1. https://ludditegeek.blogspot.com/2025/02/longing-for-layoffs.html
2. https://www.irs.gov/retirement-plans/401k-plans
3. https://www.irs.gov/retirement-plans/irc-403b-tax-sheltered-annuity-plans
4. https://www.fidelity.com/learning-center/smart-money/are-hsa-contributions-tax-deductible
5. https://www.fidelity.com/learning-center/smart-money/what-is-a-high-deductible-health-plan

The Importance of Payroll Documents

Direct Deposit eliminates the need to deposit a paycheck into a bank account.  However, you don’t get the "pay stub" that the check would come with.  The pay stub shows the gross pay and lists the deductions (and additions, if you’re lucky) that explain how the net pay was determined.  Gross pay, net pay and deductions are shown on the pay stub for both the current pay period as well as year to date (YTD) totals.

Employees who participate in Direct Deposit can access a virtual pay stub on the payroll provider’s website.  It’s a good idea to download each pay stub from that website as soon as it’s available.  As well, any tax documents (such as the W2) and benefit summaries also should be downloaded.  Why?  Because if you're ever fired or laid off, you’ll have no time to get them before you exit – your employer will escort you directly to the exit.  Your access to the payroll site is through your computer account, which would be disabled.  The employer might set up special, limited-time access to the website, but there’s no guarantee they will do so.

Why do you need pay stubs?  Loan officers might ask to see them to verify employment and salary.  Your state’s department of labor might need them to determine eligibility for unemployment benefits.  I like to use the last pay stub of the year to estimate my tax refund – if I think I’ll get a large refund, I might be motivated to file early.

The W2 probably will be mailed to you.  But you might as well download the PDF so that you don’t have to scan in the paper copy for your records.  Some tax preparation software might be able to read the PDF file and enter the values for you.

The payroll site might have other useful documents.  One in particular is the Total Compensation Summary.  It would list the value of insurance (health, dental, life, etc.), cash bonuses, stock awards¹ and tuition reimbursement (etc.) and then sum them up for you.  Unless you receive only a fixed salary and no other benefits, this can help you compare job offers against your current (or former) job.

It’s so easy to overlook or ignore pay stubs and other payroll documents.  But I hope you don’t.

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¹ Including the value of stock awards on this document is misleading because:

• Companies usually award restricted stock, which cannot be sold immediately; it has to be vested first.
• The amount of the stock award is based on the share price at the time of the grant, and that price could be much lower by the time it’s vested.  In fact it could be 0 if the company goes out of business.

Longing for Layoffs

  I long for the good old days when a company would lay off its workers. When revenue was down, a company would eliminate the excess workers. The employer would pay them a severance – perhaps one week’s pay for each year of service. It costs money initially, but the company would save money in the long term. As well, the workers would be entitled to unemployment benefits. Ahh, those were the good old days indeed.

  Now it seems that employers are too cheap to do that. They’ve found other ways to reduce the workforce without resorting to lay offs. Not only can they avoid paying severance, they keep the cost of unemployment insurance at a minimum. ^{1 2}

  My employer brags about how it doesn’t lay off its workers. Instead, it imposes a “salary sacrifice” during business down cycles. Then, when the up cycle arrives, it makes amends by giving everyone a salary reward greater than the sacrifice. The reward is paid with shares of stock.

  But the company doesn’t brag about how it finds excuses to fire workers or put them on probation, which allows them to avoid paying rewards and bonuses. It starts by assigning an employee an impossibly large workload outside of the employee’s area of expertise. As the employee invariably fails to “meet expectations,” it gas-lights him or her into believing he or she is underperforming, unworthy and deserving of probation. The paper trail starts with a written warning and is followed by probation. ³

  What can an employee do in this situation? According to Workplace Fairness, it’s important to build your case by gathering paperwork and witnesses. ⁴ Personally, I think it’s a good idea to look for a new job.

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¹ https://en.wikipedia.org/wiki/Unemployment_insurance_in_the_United_States
² https://en.wikipedia.org/wiki/Experience_modifier
³ https://en.wikipedia.org/wiki/Disciplinary_probation
⁴ https://www.workplacefairness.org/building-your-case/

More Than 1000 Wordle Games Played

Recently I completed my one thousandth game of Wordle.  Here's a screenshot of my stats:

 

I win nearly every game I start.  The win percentage of 99, which I consider too low, is because I've missed a game every so often.

More Than Two Choices

As I wait for the Vice Presidential Debate to begin, I’d like to remind you that we have more than two choices. Here’s a list of some candidates that I’ve heard of in the news:

• Kamala Harris (Democrat)
• Donald Trump (Republican)
• Jill Stein (Green Party) https://www.gp.org
• Chase Oliver (Libertarian) https://votechaseoliver.com
• Paperboy Love Prince https://paperboy.nyc/
• Literally Anybody Else https://literallyanybodyelse.com

To view a complete list, please navigate to this Wikipedia page:
https://en.wikipedia.org/wiki/Third-party_and_independent_candidates_for_the_2024_United_States_presidential_election

Thanks to Audacious for interviewing Paperboy Love Prince and Literally Anybody Else:
https://www.ctpublic.org/show/audacious-with-chion-wolf/2024-09-27/presidential-candidates-paperboy-love-prince-literally-anybody-else

Goodbye Buddy

Today, on Labor Day, 9/2, our second dog was euthanized.

I was given his ashes four days later, in a sturdy, handsome, lustrous wooden box, with bright brass hardware. He was a big boy. It was fittingly quite heavy. Despite that, it was insubstantial. 

This box and its contents was all that was left of him, after over twelve years. He was reduced to a hefty sack of ashes. 

He would protect our backyard from crows, rabbits, deer, bears, opossum and, of course, squirrels. But not for the last couple of years, because he could not see them, and so he didn't chase them. He could sense when they were there, and he’d strain to look, to seek them out earnestly. But he found only confusion.

I dispersed his ashes around the perimeter of our backyard, moving Widdershins¹, the direction of release, giving him one last opportunity to guard the yard. As I did so, I chanted "Nam Myōhō Renge Kyō"² and "Om, Mani Padme Hum,"³ alternating them.

Goodbye old buddy, old pal. Until we meet again.

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¹https://en.wikipedia.org/wiki/Widdershins

²https://en.wikipedia.org/wiki/Namu_My%C5%8Dh%C5%8D_Renge_Ky%C5%8D

³ https://en.wikipedia.org/wiki/Om_mani_padme_hum

Google's Epic AI Fail

Eleven days ago, the CDC reported that a recent outbreak of Listeria most likely was due to Boar’s Head Liverwurst¹. Since then, Boar’s Head issued a massive recall of meat products.

Having just bought a package of hot dogs, I asked my Android phone “What should I do with my Boar’s Head hot dogs?”

Google’s AI search engine replied:

Boar's Head hot dogs can be prepared in many ways, including grilling, boiling, or creating your own style. Here are some recipes for cooking Boar's Head hot dogs….

The correct answer is more along the lines of:

Consumers who have purchased these products are urged not to consume them and retailers are urged not to sell these products with the referenced sell by dates. These products should be thrown away or returned to the place of purchase. Consumers who have purchased these products are also urged to clean refrigerators thoroughly to prevent the risk of cross-contamination.²

Is this how AI plans to eliminate humans?

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¹https://www.cdc.gov/listeria/outbreaks/delimeats-7-24/details.html

²https://www.fsis.usda.gov/recalls-alerts/boars-head-provisions-co--expands-recall-ready-eat-meat-and-poultry-products-due