Anonymous User wrote:
1) I know some firms give the option for part-time withholding or whatever it's called for summers (so federal tax rate is based on what you actually earn at the end of the year). Do any firms do this for 1st years for the stub year (since I imagine most people don't earn much if anything before they start in the fall)?
2) Firms "deduct" BarBri payments from checks? I thought they just paid BarBri directly on your behalf, and any cost to them would just be reflected in a smaller stipend/advance (i.e., I had never heard of tax liability on the BarBri payment -- I guess I know nothing about tax law, but I assumed it was analogous to a gift). I feel like if I raised this with my lower V100 they'd tell me to GTFO.
3) Is it rude to ask HR what my actual stipend/advance is? I think they said it during the summer but I didn't hear. I guess I'll find out in the next few months anyway. Do any NYC V100s even do stipends instead of advances anymore?
4) Do any firms still do stub bonuses or is that a pre-ITE thought?
5) If I live in NYC but am moving to a new place, should I even ask for any moving expenses?
6) If my stipend/advance is $5000 how do I feed myself for six months.
7) I agree the thread title is insensitive so let's change it before we pull a TLS and have an entire thread about stupid shit instead of useful shit.
How did I forget to quit my journal immediately after getting an offer.
3) It is not rude, in fact you should almost certainly ask if you are concerned about planning for the summer. Don't forget to factor in taxes when budgeting. I have children, so I can generally get less taken out for withholding, but because I hadn't officially started I didn't fill out the withholding form yet. 43% of the bonus went to taxes--yikes!
4) I am pretty sure that most firms paying market bonuses (Cravath scale) gave stub bonuses last year. http://abovethelaw.com/2012/11/breaking-cravath-announces-year-end-bonuses-let-the-2012-bonus-season-begin/
It did not happen the year before and there are no guarantees for this year though.
5) My firm required the move to be more than a certain distance (I think 50 miles, but possibly more) for them to cover moving expenses. Those already living in the city do not get moving expenses. This is definitely firm specific and you should ask HR.
6) Bar loans, credit cards, or move home. For me none of those were an option because I have kids, so I had to budget really carefully my entire 3L year. You may have to get creative, and I would make sure you keep your credit score up. If you look in the new associate banter thread you will notice that many of us (myself included) are literally just making it until our first paycheck. I am still nervous about survival.