Do signing bonuses get taxed? Started at Guidehouse a month ago and was checking my direct deposit on Friday, and got paid twice but one of them look a little less than the bonus. Sorry if silly question, never been offered signing bonus before.

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Let me add to what's already been said: the withholding may be higher than usual but at the end of the year you'll be taxed on your regular income as if it was in a giant pot. So if you need up making 90k in bi weekly pay and 10k in signing bonus you'll be subject to the tax rate a person making 100k in bi weekly pay would.

If they ended up withholding more than was required, you'll be made whole come tax time

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Oh wow, didn’t know that either, this was very helpful. Thank you so much

Yes

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Damn thanks, I’ll have to take that into account in the future

No worries op. You were just making sure. You should get some back as a tax refund of course depending on your tax status though, just like regular income.

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Thanks for understanding

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All income gets taxed. Signing bonuses, annual
Bonuses, spot awards over $25 that aren’t grossed up, etc. Did you assume that only bi weekly salary was taxed??

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The unfortunate reality of taxes :(

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You're making us look bad OP 😂

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This whole app makes Guidehouse look bad...

funny

Taxation is theft.

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Just think of it as access fees for the public roads you drive on, and usage fees for the water pipes that come into your house and the sewer pipes that go out, and infrastructure fees for the power lines that bring you electricity and the fiber that brings you internet. None of that stuff is free.

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If they didn’t don’t you think people would ask for 10 years salary up front... tax free?

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Uncle Sam always gets his cut. Always.

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I understand now

Good lord

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I knew it was a stupid question but was checking

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In New York bonuses aren’t taxed at 50%. It’s very sad.

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Variable comp is taxed at a higher amount than base salary as well so plan for that. It might pay off at year end...it just depends on your situation.

To clarify, variable comp is taxed with the same rules as base salary, but you're right that it's often withheld at a higher rate in the short term!

At the end of the year when filing for taxes, it's all treated the same (e.g., $150K in base salary would be taxed at the same rate as $75K base + $75K variable)

No they don’t get taxed. It’s a secret scheme of top tier firms, their top talent quits every Dec 31st and then gets the bonus for the year as a signing bonus when being hired again on Jan 1st.

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