CompensationOct 5, 2019
Boeingprince t

Sign-on / Relo Bonus

Team Blind! Need some advice. I recently received an offer including an 11k sign-on bonus, which is paid after first 30 days of employment. The recruiter told me that they do not offer relo, so the sign-on bonus is meant to cover cost of relocation. I need to move over 1,000 miles / 4 states for the job. Considering that "bonuses" are heavily taxed, (what is it? 30%? 33%? more?) I'm figuring this will be about $7500 paid to me. I spoke with my leasing office, who confirmed in writing that cost to break my lease early will be $3500. (No last month rent was paid.) That leaves me $4k for hiring movers, moving materials, cleaning, driving my car all the way there, likely 1-2 weeks in a hotel first, 1st & last rent or deposit on new place, etc., etc. ... I'm guessing expenses will exceed this amount and it will be net loss for me. Plus, I will need to finance everything upfront and be repaid later. By design, I do not have credit cards, so it's all out of savings. The base salary is a significant increase and the cost of living in the new area is less than where I am now. The salary is a good offer (more than my current boss). But my question is if the "sign-on bonus" is normal or adequate to cover a move of this scope. Please dont ask TC 'cuz this is aerospace and pay is not comparable to tech. 15YOE / management position. Many thanks for any thoughts.

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Microsoft Tier 1 Oct 5, 2019

Why don’t you have credit cards?

Rackspace gITI21 Oct 5, 2019

It’s by design

Boeing prince t OP Oct 5, 2019

thanks, rackspace. @MS Tier 1... i have zero bills and zero mail. every one (of my very limited bills) is auto-pay. it's beautiful.

Amazon ivjdjx Oct 5, 2019

Normally sign-on is separate from relocation reimbursement. Sign-on is just a bonus for you to join that company.

Uber chumpu Oct 5, 2019

It's 40% for taxes on bonus added up so you'll end up with only $6600. Working backwards from your 6600 you are going to be in the red sadly. (I know taxes and relo stuff: my job)

Cisco X.O.X.OO Oct 5, 2019

You're going to get way less than $7500. I was also informed that there was no relocation for my position. They offered 8k singing bonus. I managed to get them to increase it to 13k. Since there was no relocation allowance for the role. I ended up collecting roughly 8k after taxes were removed. Rent, deposit, lease breaking were all above this. Also had to move 2700 miles. I ended up with a negative balance of -$900 after calculating all my expenses. But it was worth it because I received substantial increase in my monthly income. So if you can, negotiate a higher sign on. Tell them to get that figure up to 15k. Good luck.

Microsoft wXf Oct 5, 2019

Counter back at 20K. It sounds like you want to take the job so it’s Worth asking... even if they come back at 15K it will help make your move affordable.

TI ucc Oct 5, 2019

Yeah. Counter. For sure. I got $12.5k as sign-on plus relo right out of grad school to move from one state to the next (5hr drive at most). 12 years ago! I don’t work in SW or FANG or any of those sweet gigs. Also, you will eventually (tax filing next year) get taxed at your ordinary income tax rate for the bonus, so lets assume 33%, but as far as that first paycheck, they will probably withhold around 45% If you really want the job, you can also crank up the number of exceptions on your first w4 to get the most possible cash early on, then do a second w4 to get normal withholding from there on out. Good luck!

Google bako Oct 6, 2019

I don't get why you'd consider 1st/last and deposit on the new place to be part of your moving expenses. You need to pay the rent anyway and it's a deposit so you're not "losing" any of this money, just giving it up upfront. Granted all that other stuff will likely add up to more than your sign on so it'd be nice to negotiate some more but I don't think you're in the hole as much as you think you are, unless having the money in your bank account instead of bills paid upfront first is super important to you.