Facebook announces that remote WFH employees will have salaries decreased to match local COL

[Anonymous]

Anonymous wrote:FB attracts top notch software developers and trains them very well. If they want to piss all that talent off by cutting their salaries in half (even for those who are just as or more productive while wfh), then I will happily hire them for my company.

“Hi Bob, do you want to stay in SF and get paid $500,000?”
“Maybe what’s my other option?”
“Anywhere else you want.”
“Bud I don’t have to move?”
“No”
“And if I don’t, my salary stays the same?”
“Yes”
“And if I do, will I know my salary before hand?”
“Of course”
“And again, this is totally optional?”
“Yes”

Anyone who quits FB because of this is stupid and you probably shouldn’t hire them.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Easily move down to Richmond area, mainline PA, Delaware, North Carolina, Georgia, parts of Ohio, Tennessee, or Arkansas to save on COL.

You forget that you will need to send your kids to private school

Ridiculous. Richmond area, some parts of PA and Ohio all have excellent public schools, some much much better than what we have here. FFX and MoCo are downright crappy compared to Wellesley, and Lexington in MA.

But then you would be living in Wellesley and Lexington, which doesn't appeal to me.

No, you can live in Richmond, PA, Ohio, NC etc. and still get a great education. If only DC area appeals to you, then stay here.

[Anonymous]

If you work for Facebook and move to a state with no income tax, do you have to still keep paying CA income tax? That can be as high as 13.3%.

[Anonymous]

Anonymous wrote:

Anonymous wrote:FB attracts top notch software developers and trains them very well. If they want to piss all that talent off by cutting their salaries in half (even for those who are just as or more productive while wfh), then I will happily hire them for my company.

Please do. Hope you can afford a $350K software engineer + a 20% pay raise because obviously your company stock (if its even public) can't touch Facebook's in Sioux Fall, Idaho or wherever you are.

You both sound ridiculous. FB isn't going to cut salaries by half. However, they will cut them. It will still be above the local market.

If the business-owning PP is in a smaller town, he may have the possibility of hiring the FB engineer if FB eventually goes through layoffs, though. There won't be as many competitors vying for remote talent.

[Anonymous]

Anonymous wrote:If you work for Facebook and move to a state with no income tax, do you have to still keep paying CA income tax? That can be as high as 13.3%.

Taxes are withheld based on where you work, which is part of FB’s point. If you work from home, then that is the state where you pay taxes (or not if there is no income tax).

[Anonymous]

Anonymous wrote:

Anonymous wrote:If you work for Facebook and move to a state with no income tax, do you have to still keep paying CA income tax? That can be as high as 13.3%.

Taxes are withheld based on where you work, which is part of FB’s point. If you work from home, then that is the state where you pay taxes (or not if there is no income tax).

CA is notorious for trying to still tax you. So if that FB employee flies into CA to work for a couple if days at the physical Facebook location, CA tries to tax that employee.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FB attracts top notch software developers and trains them very well. If they want to piss all that talent off by cutting their salaries in half (even for those who are just as or more productive while wfh), then I will happily hire them for my company.

Please do. Hope you can afford a $350K software engineer + a 20% pay raise because obviously your company stock (if its even public) can't touch Facebook's in Sioux Fall, Idaho or wherever you are.

You both sound ridiculous. FB isn't going to cut salaries by half. However, they will cut them. It will still be above the local market.

If the business-owning PP is in a smaller town, he may have the possibility of hiring the FB engineer if FB eventually goes through layoffs, though. There won't be as many competitors vying for remote talent.

Bingo. $350k in SF will turn into $230k for a "live anywhere" fully remote position. Less pay than SF/LA/NYC but substantially above local market. Companies who formerly dominated small markets will see upward comp pressure in order to keep their best people. We're on the cusp of a huge change in the way global talent is distributed and compensated. Exciting times.

[Anonymous]

Anonymous wrote:If you work for Facebook and move to a state with no income tax, do you have to still keep paying CA income tax? That can be as high as 13.3%.

No. You are subject to tax where you live (provided you don’t travel for work).

Whether you company gets dragged into a new state because you decided to move to a new state and work from home is a different question.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:If you work for Facebook and move to a state with no income tax, do you have to still keep paying CA income tax? That can be as high as 13.3%.

Taxes are withheld based on where you work, which is part of FB’s point. If you work from home, then that is the state where you pay taxes (or not if there is no income tax).

CA is notorious for trying to still tax you. So if that FB employee flies into CA to work for a couple if days at the physical Facebook location, CA tries to tax that employee.

Yes. Taxes are withheld based on where you work (unless there is a reciprocity agreement like within the DMV).

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:FB attracts top notch software developers and trains them very well. If they want to piss all that talent off by cutting their salaries in half (even for those who are just as or more productive while wfh), then I will happily hire them for my company.

Please do. Hope you can afford a $350K software engineer + a 20% pay raise because obviously your company stock (if its even public) can't touch Facebook's in Sioux Fall, Idaho or wherever you are.

You both sound ridiculous. FB isn't going to cut salaries by half. However, they will cut them. It will still be above the local market.

If the business-owning PP is in a smaller town, he may have the possibility of hiring the FB engineer if FB eventually goes through layoffs, though. There won't be as many competitors vying for remote talent.

Bingo. $350k in SF will turn into $230k for a "live anywhere" fully remote position. Less pay than SF/LA/NYC but substantially above local market. Companies who formerly dominated small markets will see upward comp pressure in order to keep their best people. We're on the cusp of a huge change in the way global talent is distributed and compensated. Exciting times.

Did...did you even listen to what Zuckerberg said?

He was very clear. Salaries match local cost of living.

So $350K in SF turns into $80K in Charlotte. Sorry I don't make the rules.

[Anonymous]

The problem with accepting the lower pay in a low COL area is that you aren't building as much equity in your house so in 15 or 30 years you would own a 2 million dollar house in Silicon Valley vs a 500,000 house in Austin or Raleigh. That extra 1.5 million would have been paid by Facebook.

[Anonymous]

Anonymous wrote:Interesting! Great way for the company to save money.

+1

[Anonymous]

Anonymous wrote:The problem with accepting the lower pay in a low COL area is that you aren't building as much equity in your house so in 15 or 30 years you would own a 2 million dollar house in Silicon Valley vs a 500,000 house in Austin or Raleigh. That extra 1.5 million would have been paid by Facebook.

Yep. And if you ever want to advance and for some reason they decide a permanent remote worker is worth becoming senior management, then you'll need to relocate back to Facebook hub offices.

You think you're priced out now? LOL You won't even be able to qualify for a mortgage for SFH of any kind within 3 hours of SF if you're gone for too long.

[Anonymous]

Zuckerberg resembles Kushner. The same strange reptilian pasty androgynous look.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The problem with accepting the lower pay in a low COL area is that you aren't building as much equity in your house so in 15 or 30 years you would own a 2 million dollar house in Silicon Valley vs a 500,000 house in Austin or Raleigh. That extra 1.5 million would have been paid by Facebook.

Yep. And if you ever want to advance and for some reason they decide a permanent remote worker is worth becoming senior management, then you'll need to relocate back to Facebook hub offices.

You think you're priced out now? LOL You won't even be able to qualify for a mortgage for SFH of any kind within 3 hours of SF if you're gone for too long.

Tech companies have long given substantial relo packages to help with this issue. I imagine it would be the same, possibly even larger.