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57K Bonus

Old 12-27-2018, 03:11 PM
  #31  
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Was told by a recruiter that the fine print on the payback of the $57k bonus is kept close hold until indoc and the LOA is not publicly available. Would any new hires confirm if the the initial $5k is yours to keep and the other $36k is prorated? For example leave right after 12mo and would you keep $5k + 50% of $36k = $23k?
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Old 12-27-2018, 03:16 PM
  #32  
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Originally Posted by 53driver View Post
Was told be a recruiter that the fine print on the payback on the 57k bob is kept close hold until indoc. Would any new hires confirm if the the initial $5k is yours to keep and the other $36k is prorated? For example leave right after 12mo and would you keep $5k + 50% of $36k = $23k?
Nobody knows unless they took a picture of the document. They don’t give you a copy and you can’t look at it again later.

Disagree. Take it all, put it in savings, give it back if you leave. You never know what will happen to the bonus program. Better one check in the hand than 10 in the air or something....
They want the pre tax amount back. Good luck getting that back from the feds. If you’re not sure about staying two years just defer.
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Old 12-27-2018, 05:29 PM
  #33  
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Originally Posted by symbian simian View Post
Disagree. Take it all, put it in savings, give it back if you leave. You never know what will happen to the bonus program. Better one check in the hand than 10 in the air or something....
The problem with this though is if you leave within the first year you have to pay back the gross amount, not the net. So in theory, you'd have to pay pack the entire bonus, including the 22% supplemental tax you already generously provided to the Federal Govt. If you do see yourself leaving within the first year or two, deferral is the way to go.

Not sure how'd that work for end of the year taxes, but can't imagine it would be easy.

An added benefit of the deferral is that it will give you more money with regards to the company 401K match. Although, in year 2 you have to start paying ALPA fees, and that includes your bonus if I'm not mistaken...

Also, if the bonus program did disappear, you would still get your money if you opted for a deferral. I wouldn't consider that when thinking about deferring or not. Different story if they went out of Business.
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Old 12-27-2018, 06:17 PM
  #34  
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I hate to disagree, below quote is not such good advice. Your bonus will be taxed at time of payment (tax rate minimum 22% in 2019) and you WILL be responsible for paying the entire PRETAX amount back.
The 5k will be yours to keep after passing IOE (that is the length of that contractual obligation). The 27K or whatever the exact amount is yours to keep in it’s entirety after 24 months). In Indoc, you have the opportunity to defer receiving the payments until earned (approximately 3K per month to be paid during each of months 13 through 24 and the 5K after finishing IOE). No mystery, nothing is hidden. Make your decision and sign the papers. It’s all very straight forward if you are paying attention, which is admittedly very difficult to catch everything in that whirlwind of week one. Oh, yes, the bonus is contractually obligated to be paid to you, it won’t disappear, regardless of what future new hires do or don’t get.
PS take a picture of your paperwork for your records.
Originally Posted by symbian simian View Post
Disagree. Take it all, put it in savings, give it back if you leave. You never know what will happen to the bonus program. Better one check in the hand than 10 in the air or something....
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Old 12-27-2018, 06:20 PM
  #35  
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Originally Posted by 53driver View Post
Was told by a recruiter that the fine print on the payback of the $57k bonus is kept close hold until indoc and the LOA is not publicly available. Would any new hires confirm if the the initial $5k is yours to keep and the other $36k is prorated? For example leave right after 12mo and would you keep $5k + 50% of $36k = $23k?
5K after IOE. Zero additional at month 12. It is vested during months 13-24. Additional 10K after month 36, if you are not upgraded by month 36.
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Old 12-28-2018, 06:40 AM
  #36  
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Flaps8posrate,

Thank you so much that helps clarify it!
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Old 12-30-2018, 04:23 PM
  #37  
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You file an amended W2. It's not difficult at all.
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Old 12-30-2018, 05:50 PM
  #38  
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Originally Posted by Varsity View Post
You file an amended W2. It's not difficult at all.
https://www.dickinsonlaw.com/blogs-a...f-compensation

It’s not that straightforward and depends on when the bonus was received vs when you repay it. It also relies on the company to accept the post tax amount as repayment and pursue the taxes back from the government.

When someone leaves they ask for the full pre-tax amount back (I’ve seen the repayment request) so hopefully you have a decent lawyer if you really want that money back.

To me, not worth the $500 you might get in income throwing it in the market.
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Old 12-31-2018, 02:02 AM
  #39  
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Originally Posted by DarkSideMoon View Post
https://www.dickinsonlaw.com/blogs-a...f-compensation

It’s not that straightforward and depends on when the bonus was received vs when you repay it. It also relies on the company to accept the post tax amount as repayment and pursue the taxes back from the government.

When someone leaves they ask for the full pre-tax amount back (I’ve seen the repayment request) so hopefully you have a decent lawyer if you really want that money back.

To me, not worth the $500 you might get in income throwing it in the market.
Exactly. Defering it is the simplest way to go about it if you think you may leave early.
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