Midwest Dev Chat


  • The newest 15 messages in the super-cool #jobopportunities channel.

  • 11/09 14:31:20 Lee: i’m a little late to the conversation but http://remotive.io is a good one too
  • 11/09 14:32:58 Tanya: thanks!
  • 11/09 14:34:30 Lee: (also a nice slack community attached slightly_smiling_face )
  • 11/09 16:19:34 Season: In related news, my employer is hiring remote for DevOps work. If you know Terraform, CICD, AWS/GCP/Azure, that sort of thing, hit me up. Excellent pay.
  • 11/09 16:21:45 Season: Really, they’re hiring for both remote and SF-area located. Same sort of work, but different clients, so we need both.
  • 11/09 16:28:06 Marcell: No, don’t try to steer us back on topic!
  • 11/09 16:42:49 Beau: _Welcome to Slack, where the emojis are made up and the channel names don’t matter_
  • 11/11 11:51:40 Elwood: Since this topic was discussed here I thought I would add some info I just received from my accountant. Under the new tax law relocation reimbursement is now considered standard W2 income that you will now be taxed upon.
  • 11/12 09:41:04 Beau: I would expect companies to simply increase the relo bonus to cover expenses + taxes. TD Ameritrade did this with their $3000 recruitment bonus. They paid 133% so that you were certain to get the full $3k. Bonuses are required to have 25% withholding, but are taxed as regular income. They would just boost the bonus 33% so that after 25% tax, you’re left with the desired amount.
  • 11/16 07:27:37 Elwood: To this point though it could end up costing the employee much more. For example: if you are hired as at 140k all in and are a single person and they offer you 20k in relocation you would actually jump from 25% tax rate to the new 34% tax rate going over 150k that is huge and not something they could take into account as easily
  • 11/16 09:35:29 Beau: Of course, a concern in higher-income scenarios. Though in your example the tax bill difference is not severe, $200. ($160k - $157.5k) * ( 0.32 - 0.24 ) It makes the math only a bit more complicated to cover the increased taxes (32%) for the amount over $157.5k. It’s not even spreadsheet-worthy; just one or two more algebraic equations. Considering before-tax deductions (insurance, childcare, 401k), and the standard deduction, I estimate you’d have to be making north of $175k to even see money taxed at 32%.
  • 11/16 09:49:52 Elwood: ok, those are considerations but in that scenario most are not going to know that they jump that high, same would go with bonuses, there are companies that offer high bonuses 40K+ that people do not realize can actually tank your tax return and flip you from a good size return to owing a large amount.
  • 11/16 10:13:22 Beau: Double-checking that you know how tax brackets work, right? Having an income over $157.5k doesn’t mean that ALL of your income is taxed at 32%. If your bonus will be taxed at a rate higher than the statutory withholding rate, then this is 1.) a good problem to have, and 2.) something your accountant should have warned you about. Your refund might be smaller if all $40k of your bonus is taxed at the > $157.5k rate. You’d see a ~$3k difference between the withholding and the tax burden, which would make it _seem_ that your refund was reduced by $3k. But….you just got a $40k bonus. Which would you rather have? $3k more refund or $40k income?
  • 11/16 14:13:53 Elwood: I did not know that. personally I dont pay income tax so I havent had much need for that knowledge but it is interesting to know. thank you for that insight though, I do love learning new things.
  • *Usernames have been changed to protect the innocent.
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