sign on bonus

[scharnhorst]

Hi
What is everyones opinion of sign on bonuses

pros and cons

Is it better to negotiate for a bigger sign on bonus or for a larger salary ?

any input appreciated

---

Members don't see this ad.

 

[deleted87716]

Depends on the comp plan. In my group, you'd be better off with no signing bonus and a smaller guarantee. That way, you get to become a shareholder (e.g., full partner) quicker, which is where the real money is.

 

[VA Hopeful Dr]

Sign on bonuses are good if you have a need for a large sum of money quickly when you first start a new job.

 

[LUCPM]

The downside is you have to pay a hefty tax since it's considered as 'bonus'.

Sent from my SM-N960U using Tapatalk

 

[Keona]

Salary is better than sign on bonus. The taxing on bonuses is ridiculously high.

 

[scharnhorst]

how much is it taxed usually ? like 50%?

 

[deleted87716]

how much is it taxed usually ? like 50%?

Close.

 

[VA Hopeful Dr]

Close.

Yep, my recent one was like 45%

 

[Bacchus]

how much is it taxed usually ? like 50%?

My bonus was 20K. I think I got 12.5K.

 

[SLC]

The downside is you have to pay a hefty tax since it's considered as 'bonus'.

Sent from my SM-N960U using Tapatalk

Interestingly I didn’t. I didn’t know ahead of time but my company “grossed up” all incentives they gave me. I was expecting a big income tax bomb this year, then suddenly my taxable income AND my withheld tax went up dramatically. The reason? They promised me one amount, but they “paid” me something more so that after taxes were witheld I got exactly what I was promised in cold hard, already taxed cash.

Same with my residency stipend, moving expense benefit, and loan repayment (all of which are considered regular income).

 

[deleted87716]

Interestingly I didn’t. I didn’t know ahead of time but my company “grossed up” all incentives they gave me. I was expecting a big income tax bomb this year, then suddenly my taxable income AND my withheld tax went up dramatically. The reason? They promised me one amount, but they “paid” me something more so that after taxes were witheld I got exactly what I was promised in cold hard, already taxed cash.

I’m set to get a significant return instead of a ~$20k tax bill like I was expecting...pleasant surprise.

You won't find too many companies willing to do that. I'd be on the lookout for some fine print in your contract. Any strings attached?

 

[SLC]

You won't find too many companies willing to do that.

Yeah, the more I learn, the more I like.

Sure there are some annoyances, as there are working for any large company. But they really do try to treat us well.