Question for former summer associates at NYC firms

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Question for former summer associates at NYC firms

Postby Anonymous User » Wed Dec 21, 2011 5:27 pm

How much of your income did you "take home" from the summer? After taxes, living expenses over the summer, etc? Assuming ten weeks and 3k a week.

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Big Shrimpin
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Re: Question for former summer associates at NYC firms

Postby Big Shrimpin » Wed Dec 21, 2011 6:06 pm

Anonymous User wrote:How much of your income did you "take home" from the summer? After taxes, living expenses over the summer, etc? Assuming ten weeks and 3k a week.


Haha I wanted to know this so bad last spring. Nobody ever had a straight answer, howev er, so I'm gonna provide one for future TLSers:

About 4500 per paycheck (two weeks worth) after taxes. Keep in mind that rent and living expenses are highly variable. My anecodotal data point: I spent about 1200/mo on rent (fidi from a sweet find on Craigslist) and probably another 1800/mo on going out, entertainment, food, rent for my apartment at school (lolfml), etc. Thus, around 9k/mo less about 3 leaves around 6k/mo. I ended up banking like 12k for the entire summer, and I'm hoping for a FAT IRS check in the spring. HTH

imchuckbass58
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Re: Question for former summer associates at NYC firms

Postby imchuckbass58 » Wed Dec 21, 2011 6:16 pm

I took home about 4600 every two weeks post-withholding. That said, I'm expecting a pretty big refund considering the withholding was based on a full year of earnings.

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Ludo!
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Re: Question for former summer associates at NYC firms

Postby Ludo! » Wed Dec 21, 2011 6:25 pm

Is there anyway to have them withhold taxes based on just the 10 weeks?

(Thanks for the info btw)

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Wed Dec 21, 2011 6:30 pm

Thanks for the info, guys.

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Re: Question for former summer associates at NYC firms

Postby imchuckbass58 » Wed Dec 21, 2011 7:03 pm

At least at my firm, there was no automatic way to do it.

You could theoretically play the system by claiming more "points" on the withholding form. The more points you claim, the less will be withheld (there's nothing improper or illegal about doing this - it's just an administrative aid). Be careful you don't claim too many though, since if you underwithhold you could get hit with penalties.

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Re: Question for former summer associates at NYC firms

Postby Big Shrimpin » Wed Dec 21, 2011 8:45 pm

imchuckbass58 wrote:At least at my firm, there was no automatic way to do it.

You could theoretically play the system by claiming more "points" on the withholding form. The more points you claim, the less will be withheld (there's nothing improper or illegal about doing this - it's just an administrative aid). Be careful you don't claim too many though, since if you underwithhold you could get hit with penalties.


+1 to all of this. I just said fck it, I'll wait for my refund check...that way, it'll feel more special. Deferred gratification, ftw.

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Re: Question for former summer associates at NYC firms

Postby Sam Seaborn » Wed Dec 21, 2011 8:54 pm

Ludovico Technique wrote:Is there anyway to have them withhold taxes based on just the 10 weeks?

(Thanks for the info btw)


Most of the time you can talk to HR and they will be able to take care of it for you. I remember reading a bunch of threads on this in the past, maybe try a search.

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Big Shrimpin
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Re: Question for former summer associates at NYC firms

Postby Big Shrimpin » Wed Dec 21, 2011 9:23 pm

Sam Seaborn wrote:
Ludovico Technique wrote:Is there anyway to have them withhold taxes based on just the 10 weeks?

(Thanks for the info btw)


Most of the time you can talk to HR and they will be able to take care of it for you. I remember reading a bunch of threads on this in the past, maybe try a search.


Yeah, HR/accounting takes care of it all for you.

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Wed Dec 21, 2011 9:57 pm

Disclaimer: I am frugal

Weekly gross was ~$3,100 per week - industry standard. Pay was bi-monthly and came to roughly $4,000ish per pay check after all taxes. I did not do anything to modify withholding, which means by my estimates I'll have a 3-5K lump-sum refund from the IRS come tax season. I lived in cheap housing, and spent money but not at the pace that many summers did (no clothes benders, only ate at fancy restaurants on the firm's dime, etc.).

By the time the summer was over, I had just under $15,000 leftover in cash. It went towards paying down loans, investments, and 3L fun.

One other thing to note: Many NYC firms will offer you roughly 1 week's worth of pay as an advance which will be paid back through your checks.

And a tip: Apply for some credit as a summer. You can answer completely honestly that you're only working a summer job and still get approved for some jaw-dropping lines of credit. I've got a few credit cards and a combined credit limit of nearly $25,000. (but see the prior disclaimer of frugality, I've had a strong credit history for a few years before asking for limit increases and new lines of credit over the summer).

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MachineLemon
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Re: Question for former summer associates at NYC firms

Postby MachineLemon » Wed Dec 21, 2011 10:25 pm

Great thread. Were there any perks (dining, taxis, blackberries) that you had to report and pay taxes on?

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Wed Dec 21, 2011 10:47 pm

TylerM wrote:Great thread. Were there any perks (dining, taxis, blackberries) that you had to report and pay taxes on?


No.

FYI, the blackberry is never yours. General practice is to turn them in at the end of the summer, then the firm gives them to the year's incoming associates.

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Re: Question for former summer associates at NYC firms

Postby Rams55 » Thu Dec 22, 2011 10:52 am

Is that the consensus on the refund? Generally, 3-5k? I was expecting more.

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Re: Question for former summer associates at NYC firms

Postby Big Shrimpin » Thu Dec 22, 2011 12:15 pm

Rams55 wrote:Is that the consensus on the refund? Generally, 3-5k? I was expecting more.


I'll poast in the spring when I get mine. If it's even 3-5k, I'll jump for joy.

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Thu Dec 22, 2011 12:58 pm

Rams55 wrote:Is that the consensus on the refund? Generally, 3-5k? I was expecting more.


I think mine was just under $2,000 after a 6 week split summer with a firm in 2010.

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Thu Dec 22, 2011 5:34 pm

my tax rate was exactly 40% (including fed, state, nyc since i live in the city, and am single); i netted about 22k from working 11 weeks. pretty steep tax rate if you ask me. but you get most of it back since the tax witholdings don't take into account that you're only working for the summer but rather tax you as if you're making that sum all year.

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Thu Dec 22, 2011 8:23 pm

Anonymous User wrote:
TylerM wrote:Great thread. Were there any perks (dining, taxis, blackberries) that you had to report and pay taxes on?


No.

FYI, the blackberry is never yours. General practice is to turn them in at the end of the summer, then the firm gives them to the year's incoming associates.


It really varies. My firm let their summer associates keep their Blackberrys.

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Fri Dec 23, 2011 3:39 pm

What firm?! :wink:

Renzo
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Re: Question for former summer associates at NYC firms

Postby Renzo » Tue Dec 27, 2011 1:24 am

Anonymous User wrote:
Anonymous User wrote:
TylerM wrote:Great thread. Were there any perks (dining, taxis, blackberries) that you had to report and pay taxes on?


No.

FYI, the blackberry is never yours. General practice is to turn them in at the end of the summer, then the firm gives them to the year's incoming associates.


It really varies. My firm let their summer associates keep their Blackberrys.

Why? And why is this desirable?

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Re: Question for former summer associates at NYC firms

Postby Anonymous User » Tue Dec 27, 2011 4:25 am

Anonymous User wrote:My firm let their summer associates keep their Blackberrys.


Even to people they no-offered? Did they continue to pay for the service? Did they say why? Do they continue to send you messages and expect you to respond? Weird.

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Re: Question for former summer associates at NYC firms

Postby c3pO4 » Tue Dec 27, 2011 1:54 pm

Anonymous User wrote:
Anonymous User wrote:My firm let their summer associates keep their Blackberrys.


Even to people they no-offered? Did they continue to pay for the service? Did they say why? Do they continue to send you messages and expect you to respond? Weird.


The 0L's are out in force today.




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