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View Full Version : Tax implication on pay package


f1ash17
May 23, 2010, 09:30 PM
I am receiving a sign-on of 25K, a 75K relo (net lump sum) and a 200K annual salary in NJ. What tax would I have to pay on the sign-on, I assume the company is paying the tax on the relocation (due to the net lump sum position) and are there any witholdings I should be aware of? I am a single, no dependents filer (and US citzen). Thanks

ebaines
May 24, 2010, 06:21 AM
Both the sign-on bonus and relocation payment will be added to your income for tax purposes. You should plan on having to pay about 33% to the IRS and 6.4% to NJ. Your employer should automatically withhold 25% from both the sign-on bonus and relo payment for the IRS; whether that amount is sufficient depends on your specific tax situation.