Signing Bonus

  • Creator
    Topic
  • July 28, 2018 at 7:55 am #1900311
    Anonymous
    Inactive

    Hi, is the signing bonus with big4 or any other CPA firm pre-tax or post-tax? Meaning if my signing bonus is 1K for instance, will i receive the full 1k?

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  • July 28, 2018 at 9:22 am #1900452
    Anonymous
    Inactive

    After-tax.

    July 28, 2018 at 10:09 am #1900476
    2bigcpa
    Participant

    I always thought bonuses were pre-tax unless the IRS consider it an advance since you have to pay it back if you leave within 12 months. Bonuses are usually taxed at a higher rate.

    https://www.cnbc.com/2018/01/12/how-the-irs-will-treat-those-one-time-tax-bonuses.html

    July 28, 2018 at 4:20 pm #1900929
    TommyTheCat
    Participant

    keep studying for REG 2bigcpa. Looks like you dont have the compensation stuff down.

    July 28, 2018 at 7:33 pm #1901145
    ellejay
    Participant

    Bonuses are taxable at same rate as your regular wages.

    July 28, 2018 at 7:55 pm #1901166
    jbergmann1
    Participant

    Pre tax and after tax are not good terms to use here since you just want to know whether you receive the full 1000. You do not. There will be taxes taken out before it hits your bank account.

    Passed all 4 parts of the CPA exam!
    License application in progress

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