Question on comp - I'm about to get a job offer with a company which doesn't offer a bonus, so they're going to increase my salary relatively to what I have at present. That's actually better from a taxation perspective, right? Plus can increase my raises in the future. I'm not seeing any downside here.

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What does taxes have to do with this? It's all taxed the same, bonus or salary

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Absolutely true. Withholding may be different but it is taxed exactly the same.

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Taxes are irrelevant. Base salary and bonuses are taxed at the same rate; any difference in *withholding* balances out when you file taxes.

Higher base doesn't necessarily increase raises in the future. A common practice is to lure people in with a big base, but then they get lower raises than their peers who have lower bases, thus narrowing the gap over time.

Overall, a higher base means guaranteed money now, which is better than a bonus that might not materialize for whatever reason, but don't use taxes and future raises at that company as evaluation criteria.

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Well said

W2 income is all taxed the same. The only thing that changes is withholdings at time of payment for bonus vs regular income.

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You should look at what the salary increase is and then factor in what your potential bonus is.

Instead of a 20k increase, you might need a 40k increase to offset it.

Depends, is your current bonus all paid in cash?

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