signing bonus is really a forgiveable loan?

[vshah]

so i got my official offer letter today, and it explains that the 10k signing bonus is a loan that is forgivable contingent on my still working there a year from my start date. is this standard practice?

thanks,
Vivan

 

[yinan]

Yes

 

[ivan2]

yes

 

[Deeko]

I've never heard of it worded that way - are they saying you pay it back if you quit in less than a year? If so, then yes.

 

[ChaoZ]

It's only a year.

 

[thepd7]

yes

 

[GasX]

Yes, otherwise you could make a living taking signing bonuses and leaving...

 

[vshah]

cool, thanks ATOT

 

[lizardboy]

standard

 

[spidey07]

Not all signing bonuses are like that, some are. You're apparently is. It's similar with moving expenses.

Get ready to be reamed in taxes on it as well.

 

[vshah]

Originally posted by: spidey07
No all signing bonuses are like that, some are. You're apparently is. It's similar with moving expenses.

in my case relocation is purely reimbursement-based

 

[SSSnail]

All free monies are contingent on conditions, and the conditions are there to make sure you adhere to their contingencies.

 

[theknight571]

It makes sense for the employer... so you don't take the money and run (stated earlier).

I've also seen companies that would charge you for any training they sent you to if you left within a certain time frame.

 

[Tiamat]

do they take back the signing bonus if they lay you off?

 

[TallBill]

Originally posted by: theknight571
It makes sense for the employer... so you don't take the money and run (stated earlier).

I've also seen companies that would charge you for any training they sent you to if you left within a certain time frame.

My company used to do that. Then employees would just preform poorly and get fired instead of quitting, which led to bigger problems.

 

[krunchykrome]

Yes, it's standard practice. My firm paid me a signing bonus, and part of the agreement was that it would have to be repaid if I left the firm within my first year.

Also, things like tuition reimbursement must be repaid if an employee leaves the firm within one year of receiving the assistance.

 

[vshah]

Originally posted by: Tiamat
do they take back the signing bonus if they lay you off?

depends on the reason for termination

 

[Tiamat]

Originally posted by: vshah

Originally posted by: Tiamat
do they take back the signing bonus if they lay you off?

depends on the reason for termination

Termination due to no fault of your own. (good performance etc.)

 

[James Bond]

10K? That's a nice little "perk"

 

[spidey07]

Originally posted by: James Bond
10K? That's a nice little "perk"

Taxes are going to take close to half.

 

[LS21]

Originally posted by: Tiamat
do they take back the signing bonus if they lay you off?

nope. condition is usually on voluntary quit

 

[Special K]

Originally posted by: spidey07

Originally posted by: James Bond
10K? That's a nice little "perk"

Taxes are going to take close to half.

It would be the same if you earned an extra 10K in regular income that year. Bonuses aren't taxed as some special type of income.

 

[bsobel]

Originally posted by: Special K

Originally posted by: spidey07

Originally posted by: James Bond
10K? That's a nice little "perk"

Taxes are going to take close to half.

It would be the same if you earned an extra 10K in regular income that year. Bonuses aren't taxed as some special type of income.

Bu they are withheld differently (yes I know it shouldnt matter, but....)

 

[bsobel]

Originally posted by: vshah
so i got my official offer letter today, and it explains that the 10k signing bonus is a loan that is forgivable contingent on my still working there a year from my start date. is this standard practice?

thanks,
Vivan

At least tell them you want to have it prorated monthly. No since being miserable and stuck if you can't afford to replay this and hate the place.

 

[Kelvrick]

Originally posted by: bsobel

Originally posted by: Special K

Originally posted by: spidey07

Originally posted by: James Bond
10K? That's a nice little "perk"

Taxes are going to take close to half.

It would be the same if you earned an extra 10K in regular income that year. Bonuses aren't taxed as some special type of income.

Bu they are withheld differently (yes I know it shouldnt matter, but....)

Hey, just adjust your exemptions to make up for it at year end filing.

I max out my exemptions anyway, I handle my money better than the government can. For all I know, the way they're handing it out, the refund check will bounce anyway.