signing up bonus question

[Pharmacat78]

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CVS is offering me early incentive commitment, it says if you pay back in the same calender year, you will be required to pay back the net amount and will receive a tax adjustment, if you pay back in the next year, you own the gross amount with no tax ajustment. I asked somebody, and I was told that 2008 you would owe what was paid to you. (Gross-taxes). 2009 you would owe the entire gross amount back.
But I am still confused. the early incentive is 5000. If something happens this year, I decided not to work for them, how much do I own them? How about next year?
my situation: single, no dependence, full time student, right now I am paying about 30% tax (according to my paycheck).

 

[PumpkinSmasher]

CVS is offering me early incentive commitment, it says if you pay back in the same calender year, you will be required to pay back the net amount and will receive a tax adjustment, if you pay back in the next year, you own the gross amount with no tax ajustment. I asked somebody, and I was told that 2008 you would owe what was paid to you. (Gross-taxes). 2009 you would owe the entire gross amount back.
But I am still confused. the early incentive is 5000. If something happens this year, I decided not to work for them, how much do I own them? How about next year?
my situation: single, no dependence, full time student, right now I am paying about 30% tax (according to my paycheck).

Is 5,000 really worth being locked into a company. A better opportunity could present itself, send out resumes, see what is out there. Unless you love working for the CVS location you are at, I would keep my options open. There will be plenty of time to make money.

 

[tmbbmt]

after you sign on, you get the bonus in like, 2 pay periods (so 2 weeks). after taxes my 5000 came out to 2912 so if i decided not to work for them before 2009, i'd have to pay back 2912, and if i decided during 2009 not to work for them, id pay back 5000. so basically if you decide not to work for them before 2009, you pay back whatever you received on your paycheck. hope that helps.

 

[pharmdinfl]

If you look at that divided up among the 12 months out of the year, that's probably less than $400 a month (after taxes). Is that money worth being locked into a company that you may or may not enjoy working as a pharmacist for?

 

[Old Timer]

It's really simple. Do You like working for CVS? Do you want to continue working for CVS? If the answer is yes, you take the money. If the answer is no you don't take the money.

 

[PumpkinSmasher]

It's really simple. Do You like working for CVS? Do you want to continue working for CVS? If the answer is yes, you take the money. If the answer is no you don't take the money.

To each their own but I do not think 2900 after taxes is worth locking yourself into a chain. Keep your options open.

 

[Aznfarmerboi]

To each their own but I do not think 2900 after taxes is worth locking yourself into a chain. Keep your options open.

As opposed to what? I agree with oldtimer. Worst comes to come, you can always pay it back. I would take the money. 5k is a nice bonus for you to pay off your naplex exams, get ready to pay off some of the interests of your student loans and whatever other expense you might have ie graduation.

It is better than getting nothing after working for a year.

PS pumpkinsmasher, its 5k. You get the remaining from your tax refund (assuming you dont have other income considering that pharmacy students in their last year are in rotation).

 

[LiveLoveFartRepeat]

It's really simple. Do You like working for CVS? Do you want to continue working for CVS? If the answer is yes, you take the money. If the answer is no you don't take the money.

I second that. They all offer pretty much the same in my area ( Nashville/ TN) and the sign on is around the same.
I went to my school career fair thinking that was going to help me pick rite aid or CVS for good. But I came back more confused that going in. Kmart and Walmart made a positive impression, and walmart is about to open up something in the area I want really really bad. The other two DM are telling me to go ahead and sign now, that things can change between now and graduation; but I can't plan my life based on "ifs". What I see is what I get, period.
So, I decided not to sign with anybody! I stirred up too many offers and now I am stuck...Too much pressure, I am not thinking straight anymore.

As far as missing on the 5K bonus..well I can sleep with that. I 've lost more than that to my beloved hubby ebay business ventures) during pharmacy school. You can't even get a decent LV handbag out of $2900.

here is my question:

beside missing on the big money, what else I am missing if I do not sign early?

 

[Aznfarmerboi]

I second that. They all offer pretty much the same in my area ( Nashville/ TN) and the sign on is around the same.
I went to my school career fair thinking that was going to help me pick rite aid or CVS for good. But I came back more confused that going in. Kmart and Walmart made a positive impression, and walmart is about to open up something in the area I want really really bad. The other two DM are telling me to go ahead and sign now, that things can change between now and graduation; but I can't plan my life based on "ifs". What I see is what I get, period.
So, I decided not to sign with anybody! I stirred up too many offers and now I am stuck...Too much pressure, I am not thinking straight anymore.

As far as missing on the 5K bonus..well I can sleep with that. I 've lost more than that to my beloved hubby ebay business ventures) during pharmacy school. You can't even get a decent LV handbag out of $2900.

here is my question:

beside missing on the big money, what else I am missing if I do not sign early?

For a lot of regions, most chains will fire you if you do not sign (assuming you are with the company). This might mean lack of employment or a delay in you getting a job while in and out of school.

 

[Old Timer]

here is my question:

beside missing on the big money, what else I am missing if I do not sign early?

Depending on the market, a job. Right now where I am, we are not signing any six year students from outside the company. Every market is different. Supply and demand....

 

[LiveLoveFartRepeat]

For a lot of regions, most chains will fire you if you do not sign (assuming you are with the company). This might mean lack of employment or a delay in you getting a job while in and out of school.

thanks for the input AZN..that's an important point I guess. I better start praying about who to sign with..the answer might come faster from above

 

[Aznfarmerboi]

Depending on the market, a job. Right now where I am, we are not signing any six year students from outside the company. Every market is different. Supply and demand....

Thats true in my market also.