An employer is offering a mix of signing bonus and relocation reimbursement, how do I value them? They are offering enough relocation money to move a family of 4 across the nation, but it's just two of us and no furniture. So, I'm likely to ask for a lot more of it to be bonus, but not sure how much....all of it?
I *think* that using relocation money will not be counted under normal income tax (I won't receive a 1099 for it and it won't be on W2, I think) and the employer won't pay payroll tax on it. So, relocation money should be preferred by both parties.
I also *think* that the signing bonus, since it will be paid months before employment starts, might be paid as 1099 income. This money could be counted as "contractor" income and used to fund SOLO 401(k) and can find personal business expenses to deduct. Right? So, there is a decent benefit to me for taking this bonus, especially enough to max a SOLO 401(k), but the employer might pay payroll tax on it, so they might resist.
Do I have this right?
I *think* that using relocation money will not be counted under normal income tax (I won't receive a 1099 for it and it won't be on W2, I think) and the employer won't pay payroll tax on it. So, relocation money should be preferred by both parties.
I also *think* that the signing bonus, since it will be paid months before employment starts, might be paid as 1099 income. This money could be counted as "contractor" income and used to fund SOLO 401(k) and can find personal business expenses to deduct. Right? So, there is a decent benefit to me for taking this bonus, especially enough to max a SOLO 401(k), but the employer might pay payroll tax on it, so they might resist.
Do I have this right?
Comment