Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Taxes (https://www.askmehelpdesk.com/forumdisplay.php?f=320)
-   -   Tax implication on pay package (https://www.askmehelpdesk.com/showthread.php?t=472874)

  • May 23, 2010, 09:30 PM
    f1ash17
    Tax implication on pay package
    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
  • May 24, 2010, 06:21 AM
    ebaines

    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.

  • All times are GMT -7. The time now is 06:19 PM.