by Solange Lopes | Mar 20, 2015 | Career |
So you’ve received your annual bonus, and it seems pretty low…Not just because of tax reasons, but because the actual bonus amount is only 20, 30 or 50% of what you could have received, or even lower. Can you contest it? Should you even challenge it, and if so, on what basis?
My $0.05: Bonuses are in nature discretionary, which makes it hard to contest or challenge them. However, one way to do so is to keep your performance documented all year long, as evidential support to demonstrate why you should be getting a larger compensation.
Additionally, having an honest sit-down chat with your manager can also help you address these issues. Yet, keep in mind unless job security is not your priority, you can only go so far.
If you’d rather keep your job, then challenge your bonus wisely and don’t be overly pushy. However, if you’re not worried about keeping your job (you may be ready to leave), then you may want to involve Human Resources in the discussion.
Have you ever challenged your bonus, and if so, how did you go about it?
The Corporate Sis.
by Solange Lopes | Mar 20, 2015 | Career |
Fringed cardigan – $43.99 – Photo credit: macys.com
One of the biggest trends filling the NY Fashion Week runways, the fringe, had me scratching my head for a bit…Until I found some flattering fashion picks like this fringed cardigan from Macy’s. Loving the bright, “Springy” color of this top, enhanced by the fringe design in the front. This cardigan is on sale for $43.99 at Macy’s!
And since we’re on the fringe trend, I also like this fringed duster cardigan, and this oh so elegant printed fringed sweater.
The Corporate Sis.
by Solange Lopes | Mar 20, 2015 | Career
signing-bonus – Photo credit: integrityhr.com
Since we’re on the topic of bonuses, how about asking for a signing bonus once a company shows interest in you and is ready to make an offer? Should you expect your potential employer to offer it right off the bat? And if so, are there conditions attached to it?
According to the National Association of Colleges and Employers, companies will offer more signing bonuses this year to graduates since 2010. And if you’re wondering if you should be asking, and/or getting one, here are a few reasons to go for it and ask:
1. If your qualifications are highly in demand: even in periods of high unemployment, companies will invest in high-quality candidates. If your qualifications, specialization or industry are highly in demand, consider asking for that signing bonus.
2. If you are asked to relocate: Some positions will require you to relocate to less desirable locations. In this case, companies may offer pretty generous signing bonuses. In case they don’t, consider requesting one!
3. If you’re deciding between multiple offers: You may have to choose between a few competitive offers. In this case, you may ask the respective companies to sweeten the deal with a signing bonus!
However, beware of the conditions that may be attached to your signing bonus. Some companies may require you to pay it back, deduct it from your salary or yearly bonus, or decide to distribute it in installments over an extended period of time. In any case, make sure you are clear on the conditions and requirements before you commit to anything!
What are your thoughts on signing bonuses?
The Corporate Sis.
by Solange Lopes | Mar 19, 2015 | Make More Money |
Photo credit: https://kellyewhitney.files.wordpress.com
We already know the gender wage gap is here, and is much more complex than we’d ever imagined. And apparently, it won’t close for another 43 years…Unfortunately, performance-based pay is also subjected to the much-dreaded gender bias. Back in 2009, Bank of America was the target of a federal lawsuit alleging discrimination against female brokers who received lower retention bonuses. More recently, cases like Silicon Valley’s Ellen Pao’s, have reminded us of the unfair biases and practices that happen at all levels of management.
A 2013 study by UK-based Chartered Management Institute finds the gender bias in salaries is being aggravated by bonus to male managers being 50% higher than that of female managers. The disparity between these is unfortunately striking, and very real. And given the nature of bonuses, they’re also very hard to discuss or remediate for obvious confidentiality and subjectivity reasons.
A “pay-by-committee” solution, whereby executives are evaluated strictly in terms of performance and results, has shown women CEOs on boards of FTSE350 companies to clearly outperform their male counterparts, according to a survey by the University of Southampton.
Why then don’t more companies adopt this, or a similar system, to award bonuses strictly on the basis of performance and results generated?
The Corporate Sis.
by Solange Lopes | Mar 18, 2015 | Career, Make More Money
Photo credit: gobankingrates.com
So we’ve been discussing getting the bonus you deserve, and what not to do with all your bonus moolah once you get it. Now, one question most employees ask themselves after receiving their bonus is, why did I have to pay so much tax on it? Geesh…
Sorry to burst your bubble, but your bonus does get taxed. It’s intact considered “supplemental income” by the IRS, which recommends a flat 25% tax rate to employers. Keep in mind some employers do follow this, and others choose not to, preferring to combine your bonus and you regular pay together and withholding tax at the normal rate.
It may look like you’re taxed more on your bonus than on your regular pay. What really happens is this “supplemental income” may just end up placing you in a higher income tax bracket, which in turn makes it look like your withholdings are higher. However, no higher tax rates are used for bonuses.
My $0.05: You know the saying, “there’s no certainty in life other than death and taxes”. That holds true for your bonus too. So prepare yourself to see a chunk of it go to Uncle Sam every year! Keep in mind you can also beat Uncle Sam at his own game, by 1) saving some or all of your bonus money in your 401K (check with your employer how bonuses are handled in this case though, practices may vary from company to company), 2) investing it in a diversified portfolio,or 3) contributing in multiple accounts like a health savings account or Roth IRA to reduce your taxable income.
Or you could buy those shoes…
The Corporate Sis.
So you’ve received your annual bonus, and it seems pretty low…Not just because of tax reasons, but because the actual bonus amount is only 20, 30 or 50% of what you could have received, or even lower. Can you contest it? Should you even challenge it, and if so, on what basis?
