When Do Signing Bonuses Get Paid out?

I recently signed a FT offer with a BB bank. I am trying to do some financial planning for the remainder of my senior year, and was wondering when signing bonuses typically get paid out.

How do sign-on bonuses work?

Sign on bonuses are paid out differently by each bank. The most straight forward way to find out is to ask your HR representative. The three most common times for the bonus to come is:

  • With the first paycheck
  • A few months prior to starting
  • Shortly after signing

What is the typical signing / relocation bonus?

For undergrads and MBAs - the typical signing bonus is $10,000. In most instances - tax will be applied and you may end up with closer to ~$6,000.

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It depends on the bank. For example, JP pays it out fairly quickly after you sign in the fall. MS and GS pay in the spring time before you start. Some banks (e.g. HSBC, Rothschild) pay when you start. Just ask your recruiter, he/she will know.

 

I was told the signing bonus comes in the spring even if you sign now. I've also heard it's basically all put towards renting a place in Manhattan since a security deposit is needed and usually the last months rent plus the current month's rent.

Not really disagreeing with Monkey_Island...just saying what I've heard.

 

I received mine in the spring, and the cost to get into my apartment was only $300 less than the entire post-tax bonus. People, I suggest saving the entirety of your bonus for your apartment.

 

when I started they were released after you passed the urine test. That way if you failed you got fired without having received the sign-on/relocation bonus

 

I know some places do this, so my question becomes this: Does the relocation check take long or does it get cut out as soon as you pass the background check and you have accepted the position?

 

Well a relocation bonus is money they give you to "relocate"....like to cover moving expenses. I'm pretty sure you'll need it before the starting date, a couple months at the LATEST. I'm guessing they keep this in mind...?

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
 

Well moving out of your dorm room into an apartment is technically considered a "relocation."

"We are lawyers! We sue people! Occasionally, we get aggressive and garnish wages, but WE DO NOT ABDUCT!" -Boston Legal-
 
michelle117:
they send it out within 30 days of you accepting the offer, typically 5k signing, 10k relocation if you need to relocate..

Wait so they give you less money if you are local? That doesn't seem fair. Money is money, right?

 

I know bonuses get sent out in January. That includes 10k signing plus 1k early acceptance from summer interns that were offered jobs and took them before Oct 6th.

I believe these are all after tax- so try to get your W-4's in so you don't end up with $6k instead of like $8 or 9k. You will need the extra money when you are getting started in the city (security deposit plus first and last months rent plus agent fee will get up to about $8k or so). You can displace this tax obligation later on with salary.

Just a thought.

 

Jaygatsby28,

can you be a bit more specific about taxes? Are you saying that I cant just go and cash the check for the 10k at the bank?

also, are bonuses taxed differently from the base?

in terms of bonuses for BBs 60+10 is standard. Thats what my friends got at JPM, ML and UBS.

 

Checks are issued net of tax. This is standard payroll accounting. If your tax is 40% on $10k then you will received a check in the amount of $6k.

Yes $10k is the standard for signing. However, if you were a summer intern at UBS and received an offer and accepted it before Oct 6th you received an additional $1k bonus.

 

I also signed back in end of October. After I mailed it out I have not heard back at all from Citi. And that includes no signing bonus check. Is this normal? Should the companies at least be giving out a confirmation or something?

 

I signed end of October. Haven't heard anything from HR but have been in touch with some of the MDs on the desk. Just heard from a former employer that they received something for my background check a few weeks ago. It's supposed to be deposited in my bank account on the 23 so I'm just expecting to see my balance shoot up that day :)

 

My bank doesn't pay the signing bonuses until Q1 2007, which totally sucks. But the relo was 12K and they also gave us end of the summer bonuses as well as incentive bonuses for early acceptance, so when it finally does arrive I'll be happy.

 
bender:
Yeah, it doesn't specify a date. I would like to know because I plan on using some of the money to do some travelling before work starts. I may just ask a current analyst who is an alum.

Just ask HR - it's a perfectly acceptable question.

 

Mine was a "relocation" bonus and I had two options 1) take it before work in full but have no taxes withheld (ie need to save for it yourself) 2) Take or three months into work with normal withholding

Obv I took the 1st option. Also this was for FT. I didn't get or ever hear of anyone getting as SA bonus.

 

SAs getting bonus?

[quote]The HBS guys have MAD SWAGGER. They frequently wear their class jackets to boston bars, strutting and acting like they own the joint. They just ooze success, confidence, swagger, basically attributes of alpha males.[/quote]
 

It's typically $2000 for relocation, but the problem is you get hit right out of the gate with a 40% tax. It comes with your first paycheck usually.

I am permanently behind on PMs, it's not personal.
 

Mine was withheld at something like 39.8%. I received it in March 2007 prior to starting that summer.

To anyone that hasn't received their signing bonus yet, do not worry. Also, after your first year, you should receive a significant tax return as it is likely your income will be withheld at a "full year" rate even though you'll only receive pay during the 2nd half of the year.

~~~~~~~~~~~ CompBanker

CompBanker’s Career Guidance Services: https://www.rossettiadvisors.com/
 

Signing bonuses are taxed significantly, the money that goes into the bank should be a few hundred below 6K

Don't complain, MBB signing bonuses are 5K so thats a sick $2900 signing bonus in the bank (about enough for 4 months in a non-super awesome city, so I guess it goes the same distance as the ~6K you get for living in NYC)

At the same time, you can get some of it back by filling out tax forms or some shit, I have no idea, but the govt will end up giving you some of it back fro what I've heard

 

Signing bonus arrived close to starting date, maybe even after I started? Can't exactly remember but the timing of the payout was unrelated with the date the contract was signed. And I did my internship with the bank where I ultimately worked.

Been a while though, but I remember being disappointed as I had expected to receive a nice payment to use during 2nd year MBA, while in reality I had to wait a long ass time to get paid.

 
gamenumbers:
Signing bonus arrived close to starting date, maybe even after I started? Can't exactly remember but the timing of the payout was unrelated with the date the contract was signed. And I did my internship with the bank where I ultimately worked.

Been a while though, but I remember being disappointed as I had expected to receive a nice payment to use during 2nd year MBA, while in reality I had to wait a long ass time to get paid.

Thanks for the input. I think that is BS they made you wait. The HR guy told me the he "suspected" that I would receive mine by late November / early December. I haven't heard a thing since. Please let me know if you hear of anyone else receiving their signing bonuses. Thanks

 

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