If you or your SO works in Big Law, I have questions for you!
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Anonymous
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My SO is on the job market and we're trying to figure out his salary requirements. But it's hard to work backward from a net amount to a gross amount, esp. with the unknown deductions for health care, etc. If you get your health care coverage from employment at a big law firm, what is your monthly premium? Other than taxes, health care, 401(k), and FSA, do you have any other deductions from your paycheck? How much does it cost to park at your office? Are there other costs associated with working at Big Law that I should factor in?
Also, if you are a relatively young/newish partner at Big Law and you're comfortable saying, I earn "xxx" and my biweekly gross is "xx," after deductions for "a, b, and c" that would be super helpful. TIA! |
Anonymous
| These are costs that an individual might incur at any job. I imagine that it varies from firm to firm and that your husband will need to negotiate a compensation package that fits your needs if he receives an offer. |
Anonymous
| here we go.. |
Anonymous
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K-1 partners technically don't get benefits. They get a draw against profits, distributions of profits, and all benefits are self paid. W-2/income partners are employees so that's different.
Typical benefits would be: Health insurance/life insurance/disability insurance - depends on what plans are offered and what you pick. as a k-1 partner there is no "firm" contribution. I'd count on $1000 a month or so. Retirement - the self employed retirement plan is probably a c. $30-35,000 annual contribution Partner capital - buy in will vary widely as will financing options. Count on about 30% of comp as a capital target that will need to be paid in over 4-5 years. And it will of course go up as comp increases. If he's coming in laterally the buy in period will be shorter. So if he is paid $300k his capital requirement will be about $90k. Parking is just an expense. Depends where his office is. Probably runs $250-300 month. I'm sure I am forgetting something. |
Anonymous
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A little under a million a year here. I dont give a fuck what my 401(k) is, it caps out in no time - the max is what, $17K?. Ditto with FICA - that stops at 100k. Healthcare is a few hundred each paycheck, I dont really know. I bought a parking spot next door.
Honestly, with partner income, these numbers are not even remotely material and if a partner tried to come in arguing salary with me because of some bullshit monthly parking fee, I'd punch you in the face and tell you to get the fuck out of my office. |
Anonymous
I doubt very much that you are a partner, in the 1mm range no less. First, these and any compensation/expense questions are entirely legit and kudos for the OP looking into it now. Second, if you really were a partner at a large firm, you would know that there are more partners than not (especially in this town in these lean days) that are making less than or equivalent to what a very senior associate or a highly compensated counsel is making. As a more helpful pp noted, partners do not have things like benefits paid by the firm - they are paid by the individual partner as are 401k contributions, etc. So, if a young partner comes onboard and is expected to pay-in a few hundred thousand into the partnership with the expectation of making only about 300k and also has to contribute all of his/her benefits, that is a very important financial balance to take into account. At our firm, we have had partners inquire about becoming counsel and relinquishing their parter role because of these financial realities. Frankly, the the generation in their 40's, that makes far more sense. Good luck OP. |
Anonymous
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Jeez -- why all the snarky comments?! (Thank you very much for the helpful information, 16:05 and 16:17!) We're just trying to gather as much info as possible to make an informed decision.
A few more questions -- for non-equity partners, there is obviously no capital contribution. But what about health care? Do you still pay the whole tab yourself? Or does the firm subsidize a portion? For equity partners, is the capital contribution a pre-tax or post-tax expense? I knew that equity partners had to "buy into" the partnership but had no idea the capital requirement was as high as 30% for so many years. Once you leave the firm, do you get that money back? I realize parking is not the same type of benefit as health insurance. I just wanted a ballpark figure, as that will be an additional expense of switching jobs. Sorry if these are stupid questions. This is a whole new world for us. |
Anonymous
| Also, how much does it cost to purchase coffee in your local starbucks? How much do you spend on dry cleaning? |
Anonymous
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Healthcare for a family is about $1000/month for the best plan at my firm (90/10 PPO)
Parking is about $150/month (pre-tax). |
Anonymous
I like this guy... |
Anonymous
You are an asshole. |
Anonymous
V. helpful--thank you!! Are you an equity partner? |
Anonymous
There's no way you are a biglaw partner. In fact I would bet you have never set foot inside a law firm, except maybe as a client. If you can't see why that is obvious from your post, that just proves my point. |
Anonymous
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DH is a biglaw partner. Health insurance/life insurance/disabily is about 1k per month. I don't have a clue about parking.
If he is considering an offer, call HR and ask, but I think those figures are pretty average for partners in DC. Income: $2 million. |
Anonymous
| benefits at our firm cost closer to 20k per year |