I accepted an offer to start as a first year associate at a bank and I am thinking of reneging on my acceptance. Am I responsible to repay my post tax or pre tax bonus amount?
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Pre-tax. It will be incumbent on you to recoup the withholdings from the IRS on your tax return.
I'm not sure it gets much more clear than GenghisKhan's response... write a check for the pre-tax amount amigo...
fucking hell
Espitzer, which groups are you joining...do you mind sharing?
I had a friend who thought that since his pre-tax sign-on was 10k, and he only kept 6k after taxes, and he had to repay the full 10k, he lost 4k in the whole deal... in actuality... that 4k is withheld for your taxes... when you file you will be refunded that 4k... or you could simply not pay your taxes on your new sign on bonus... as in opt to not have anything withheld from it.
Not sure if 'fucking hell' is because you spent it, or because you think your gonna lose on the post-tax/pre-tax difference.
so, for clarification, I would only have to make out a check for the post-tax amount?
No, what on Earth gave you that idea? As GK and MH have stated, you'll have to make a out a check for the full 10k.
Or you can write a check for the post-tax amount and get blacklisted by every bank out there.
Chill out. If you reneg, and you can't afford to pay the pre-tax amount, pay the post-tax and then make payments. Your contract should stipulate that you will be charged an 8% IR, which sucks, but means that it is not the end of the world...
Bailing/reneg on new job within 1-3 months? (Originally Posted: 03/15/2010)
Say I took a new job but got a better offer shortly thereafter and left within 1 week - 3 months. If I leave the job can they get back the signing bonus? Any other consequences I should be aware of other than burning bridges? (Assume I don't care.)
They will definitely demand your signing bonus back. Other than that while this isn't looked favourably upon, if you got a better job then take it and don't look back.
how much better of an offer? Like ehh vs. wow or wow vs more wow
like wooooow vs ok. not something i would do lightly but i'm considering a scenario where it would be a no brainer. (think like paulson & co vs. umm db?)
so you think they would want back the pro-rated signing bonus for the rest of the year or the whole thing? just wondering ... not quite in this situation yet but hoping to be.
They would want the entire sign-on bonus with interest.
Reneging Questions (Originally Posted: 11/18/2010)
I had a few questions regarding reneging. How exactly do you reneg gracefully? What happens if you already signed the offer / in the process of receiving signing bonus / etc.? Also, in terms of recruiting when you already have signed an offer, when should you mention it to firms that you are reneging on a previously signed offer (before/after you interview and/or before/after you get the offer).
Don't put it in writing if you can email it. Don't email it if you can call it in.
I say call it in. "I'm going with another offer. Thanks but the other firm is offering me too much money to turn down."
The "more money" reasoning is the best you can do.
Play the student debt card.
Alternative: Set the start date for the desired job 2 weeks after the start date of the job you plan to renege on. Then give your 2 weeks the first day you start your job.
That is an absolutely terrible idea. If you are dead set on taking a 2nd offer, wait until the second offer is delivered and executed before you even THINK about placing the phone call to renege. Don't ever renege before you have the next offer in hand. Once you renege, you can never go back.
BAD IDEA
Uh definitely wasn't planning on reneging before I got an offer (or even before I started interviewing), I just wanted to know what I'm getting myself into and figure out things to do/not to do (ie. don't spend signing bonus)
"when should you mention it to firms that you are reneging on a previously signed offer (before/after you interview and/or before/after you get the offer)."
There is no such thing as "reneging gracefully". That is a load of crap.
Once you accept, either verbally or in writing, you are expected to join the desk.
If you can stand behind a contract, then your reputation is worthless. This is a business where reputation is everything.
Super reneging--would it screw me over? (Originally Posted: 12/18/2012)
What would happen if I reneged from MBB (already signed, got bonus, etc.) and took a GS IBD offer I recently got?
Big repercussions at MBB. They'll make you return the money, and will be overall p'od.
But getting a GS IBD offer is the holy grail. Take it, and don't look back.
Uh, not really. 90% of MBB consultants could have worked at GS/JPM/whatever if they'd wanted.
Then why didnt they?! Lol jk. but seriously, you're on an WALLSTREEToasis- you're clearly gna have people here support banking on all levels/tiers over consulting for the most part. this accomplishes nothing
OP, congrats on the offer. just get it over with ASAP with the MBB and be proud of bagging GS!
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