Etsy

Brooklyn FI has several clients at Etsy and has helped them navigate their generous benefits program and develop a plan for their Restricted Stock Units. Here’s some insights we’ve gleaned from their employer-sponsored benefits.

Etsy provides a robust benefits plan for its full-time employees, and it’s time once again to make your elections for the upcoming year. Making educated choices this open enrollment can save you money and help you navigate whatever challenges lie ahead next year. We’ve put together this guide to help as you make these choices - feel free to share it with your colleagues and friends who may find it helpful.

Please note that benefits are subject to change at any time.

Health Insurance

Etsy’s plan through United Healthcare includes two options:

  1. A High Deductible Health Plan (HDHP)

  2. Preferred Provider Organization Plan  (PPO)

The HDHP, like its name, has a higher deductible - $2,000 for individuals and $4,000 for families for in-network coverage. This means that aside from preventative care, the expenses are out-of-pocket until you reach your deductible. This plan is also compatible with a Health Savings Account (HSA). That’s a special account for medical expenses that you can contribute to on a pre-tax basis (payroll deduction), and withdrawal from tax-free for medical costs. And, Etsy contributes $500 for individuals and $1,000 for families!

The PPO plan is different, visits to in-network providers like your physician or a specialist, or a trip to the ER are covered by a co-pay - often $30 for your family doctor or $40. And the deductible in this plan is much lower - $500 for individuals and $1,250 for families for in-network coverage. Participating in the PPO plan will not allow HSA contributions, but it will allow you to save to Healthcare Flexible Spending Account on a pre-tax basis. 

Which plan you choose depends on a variety of factors: how often you anticipate using your insurance, cash flow needs, and tax considerations. 

If you rarely go to the doctor aside from an annual physical, and don’t take prescription drugs, the HDHP may make sense - and allow you to stash away savings tax-free for medical costs later in life. However, if you want to know that a few trips to a specialist will simply cost your co-pay, and not a few thousand dollars, the PPO plan will have minimal impact on your cash flow. 

BKFI Tip: Consider electing the HSA plan, maxing it out every year, and paying for your expenses out of other savings to maximize the tax-free growth of the HSA!

Dependent Care Benefits

Etsy provides a Dependent Care FSA as well. This allows pre-tax funds to be set aside for childcare expenses - up to $5,000/year. If you have kids in daycare, or after-school care, this can save you some money in taxes.

BKFI Tip: Both Dependent Care and Healthcare FSAs are ‘use it or lose it’ meaning the contributions must be spent before March 15th of the year following your contributions. For example, 2021 contributions must be spent by March 15th, 2022 or they’ll be forfeited to your employer.

Dental

Etsy pays 100% of the premium cost for their Standard Dental Plan, with an option to upgrade for Enhanced coverage. Consider choosing the Enhanced plan if you anticipate orthodontic care needs for your family, or high out-of-pocket dental expenses in the upcoming year. 

Vision

Etsy pays 100% of the premiums for Vision coverage, which partially covers exams, lenses, and frames once per year. 

BKFI Tip: Out of pocket expenses for Vision and Dental are covered by your FSA - keep your receipt and get reimbursed tax-free.

Life Insurance

As part of your robust benefits plan, Etsy provides 2x your annual salary in life insurance - up to $400,000. You can purchase additional coverage of up-to $500,000 of supplemental life insurance. Spousal voluntary life insurance is also available, but you must buy comparable coverage for yourself. 

BKFI Tip: Diversification matters. No, we aren’t talking about investments, we’re talking about life insurance. If you need life insurance, be sure not to link all of it to your employer’s coverage. Consider getting your own policy that you can keep even if you leave your job. 

Bonus BKFI Tip: Don’t forget to name a beneficiary when setting up your employer-sponsored life insurance coverage. Make sure the funds go where you want them, should something happen to you. 

Disability Insurance

Etsy provides both short-term and long-term disability coverage. Short-term coverage starts without any waiting period, covering 26 weeks at 100% of your weekly salary. Long-term disability kicks in after 180 days (when short-term runs out) and pays 60% of your base salary up-to $12,500 per month. Long-term coverage stops paying when you’re no longer disabled, or reach retirement age. 

BKFI Tip: When your employer pays the premiums for disability insurance, the benefits are taxable to you when you receive them. Consider what 60% of your pay is, and then imagine income taxes coming out of that - that’s what your take home would be under a long-term disability plan. 

Retirement Planning

Etsy’s retirement plan is administered by John Hancock and does offer a company match. Etsy matches 50% of the first 6% you contribute - essentially a 3% match. The plan allows for both pre-tax and Roth contributions, upto a maximum of $19,500. Employees age 50 or older can make a catch-up contribution of up-to $6,500 annually. 

BKFI Tip: Have you maxed out your 401(k) for this year? If not, there’s still time to go in and update your contributions.

Bonus BKFI Tip: Review your 401(k) beneficiaries annually and make sure they match your wishes. 

Legal Plan

For $24/month, you can access a nationwide network of attorneys via the MetLaw plan for a range of legal issues and chat with an attorney on the phone or in-office. 

BKFI Tip: Starting a family? Buying a home? You’ll likely need an attorney to draft estate planning documents or review your real estate contract. Legal plans like these often provide this service at little additional cost. 

Childcare Emergencies

Care.com has a back-up care service for when your primary caregiver is unavailable. Subsidized back-up care comes at just $20/day for in-home care or $10/child at a childcare center. 

Charitable Match

Etsy will match $500 of your charitable contributions each year to an eligible non-profit. Review Etsy’s criteria for more information.

Work Life Stipend

Etsy provides up to $1,700 annually for work and/or life expenses. This includes Financial Planning fees you pay Brooklyn FI that can be reimbursed.