2021 End of Year Bonuses Forum

[Definitely Not North]

What does it all mean?

[fmrez]

Today is the day. Hope springs eternal.

I believe

On my way into the office, a flock of pidgeons was flushed into the air, and they formed a dollar sign in the sky.

The auguries are good.

Can you smell the psychosphere?

[Anonymous User]

2021 bonuses have been cancelled due to lack of hustle. Deal with it.

[rgn122000]

600 posts in and still nothing.

[Anonymous User]

2021 bonuses have been cancelled due to lack of hustle. Deal with it.

Anyone who brings candy into this camp is not your friend. He is a destroyer.

[Anonymous User]

2021 bonuses have been cancelled due to lack of hustle. Deal with it.

Anyone who brings candy into this camp is not your friend. He is a destroyer.

Never let anyone sign your checks

[Anonymous User]

I’m sad that there’s no real news to digest. But while we’re still in rampant speculation mode, what do you all make of this?
https://abovethelaw.com/2021/11/unlike- ... ass-sizes/

One interpretation is that 2020-2021 & the pandemic, not to mention longer-term industry trends, have finally “broken the Cravath system” — to borrow ATL’s words. And that means that Cravath will permanently give up the mantle of compensation leader. (They certainly have not led in any meaningful way for a year or two.)

Another interpretation would be that Cravath is purposefully minting fewer partners this year, since they are beefing up their balance sheet in preparation to DOUBLE TRIPLE. THE. SCALE.

[mtf612]

600 posts in and still nothing.

Maybe the real bonus was the friends we made along the way

[Ultramar vistas]

600 posts in and still nothing.

Maybe the real bonus was the friends we made along the way

How can you we’ve done nothing? We have firmly established that the correct move is to triple the scale, and that the Pandemic has broken Cravath. What more could you want?

[lawdude31]

600 posts in and still nothing.

Maybe the real bonus was the friends we made along the way

And the reason our firms need us to come into the office is to make more friends - that will be the special bonus. Even more for high billers.

[Anon-non-anon]

600 posts in and still nothing.

Maybe the real bonus was the friends we made along the way

<3

[Anonymous User]

2021 bonuses have been cancelled due to lack of hustle. Deal with it.

Anyone who brings candy into this camp is not your friend. He is a destroyer.

Never let anyone sign your checks

Wake up campers. It's a glorious morning! Today is evaluation day. The key word here is 'value'. Do you have any? Not yet, but by the end of the summer this camp is going to be full of skinny winners!

[Anonymous User]

I’m sad that there’s no real news to digest. But while we’re still in rampant speculation mode, what do you all make of this?
https://abovethelaw.com/2021/11/unlike- ... ass-sizes/

One interpretation is that 2020-2021 & the pandemic, not to mention longer-term industry trends, have finally “broken the Cravath system” — to borrow ATL’s words. And that means that Cravath will permanently give up the mantle of compensation leader. (They certainly have not led in any meaningful way for a year or two.)

Another interpretation would be that Cravath is purposefully minting fewer partners this year, since they are beefing up their balance sheet in preparation to DOUBLE TRIPLE. THE. SCALE.

I've come to realize that anyone who isn't at a law firm is completely clueless about what has been going on the last couple of years.

I had an in-house interview last night where the lawyers (all former V10 biglaw) asked me if I had started to draft primary documents as I was fairly junior. I'm a 4th year.

It was hard to keep a straight face, but I told them, we're so thin that we have 2nd years running deals and drafting primary documents...there's no one else to do it. Not sure they believed me, but it was pretty clear that they, and probably everyone at above the law, is out of touch with the "new norm" at firms.

[Anonymous User]

The House just passed BBB which raises the SALT deduction cap to $80,000, retroactive for the 2021 tax year. So let's get some big bonuses that we can then deduct away from Uncle Sam after NY takes their share first.

[Anonymous User]

I've come to realize that anyone who isn't at a law firm is completely clueless about what has been going on the last couple of years.

I had an in-house interview last night where the lawyers (all former V10 biglaw) asked me if I had started to draft primary documents as I was fairly junior. I'm a 4th year.

It was hard to keep a straight face, but I told them, we're so thin that we have 2nd years running deals and drafting primary documents...there's no one else to do it. Not sure they believed me, but it was pretty clear that they, and probably everyone at above the law, is out of touch with the "new norm" at firms.

I feel like by 4th year at my last firm you were almost expected to not even be drafting all the primary documents anymore. Too senior for that...have to just review what the 2nd year is spitting out.

[TUwave]

The House just passed BBB which raises the SALT deduction cap to $80,000, retroactive for the 2021 tax year. So let's get some big bonuses that we can then deduct away from Uncle Sam after NY takes their share first.

Wow that's huge, I'll take that little tidbit of news to satiate me until bonus news comes out.

[Anonymous User]

The House just passed BBB which raises the SALT deduction cap to $80,000, retroactive for the 2021 tax year. So let's get some big bonuses that we can then deduct away from Uncle Sam after NY takes their share first.

This is a stupid place to ask for tax advice, but your average junior associate in NY does or does not pay enough in SALT to make the SALT deduction worth it (over the standard deduction)?

[tsk222]

The House just passed BBB which raises the SALT deduction cap to $80,000, retroactive for the 2021 tax year. So let's get some big bonuses that we can then deduct away from Uncle Sam after NY takes their share first.

This is a stupid place to ask for tax advice, but your average junior associate in NY does or does not pay enough in SALT to make the SALT deduction worth it (over the standard deduction)?

Easily worth it. Juniors will pay upwards of $25k in state and city taxes.

[Anonymous User]

The House just passed BBB which raises the SALT deduction cap to $80,000, retroactive for the 2021 tax year. So let's get some big bonuses that we can then deduct away from Uncle Sam after NY takes their share first.

This is a stupid place to ask for tax advice, but your average junior associate in NY does or does not pay enough in SALT to make the SALT deduction worth it (over the standard deduction)?

I believe a first year in NYC will pay over $20k in SALT, and the individual deduction is $12,550.

[Anonymous User]

*Cookie Monster Voice*

"Give ... me ... bonus!!! Me ... want ... bonus!!!"

[Anonymous User]

The House just passed BBB which raises the SALT deduction cap to $80,000, retroactive for the 2021 tax year. So let's get some big bonuses that we can then deduct away from Uncle Sam after NY takes their share first.

This is a stupid place to ask for tax advice, but your average junior associate in NY does or does not pay enough in SALT to make the SALT deduction worth it (over the standard deduction)?

I believe a first year in NYC will pay over $20k in SALT, and the individual deduction is $12,550.

And the marginal federal rate at issue for pretty much all biglaw associates is 35%. So basically you would save in federal taxes 35% of the delta between $12,500 and whatever you pay in SALT. If that’s $24k, you save .35*11,500 or am additional $4k in your pocket. And mid levels/seniors are paying substantially more than $24k in some markets (NY, CA, DC).

[ElCuervo]

Which firm will have the guts to move first this year?

[Anonymous User]

The House just passed BBB which raises the SALT deduction cap to $80,000, retroactive for the 2021 tax year. So let's get some big bonuses that we can then deduct away from Uncle Sam after NY takes their share first.

This is a stupid place to ask for tax advice, but your average junior associate in NY does or does not pay enough in SALT to make the SALT deduction worth it (over the standard deduction)?

I believe a first year in NYC will pay over $20k in SALT, and the individual deduction is $12,550.

And the marginal federal rate at issue for pretty much all biglaw associates is 35%. So basically you would save in federal taxes 35% of the delta between $12,500 and whatever you pay in SALT. If that’s $24k, you save .35*11,500 or am additional $4k in your pocket. And mid levels/seniors are paying substantially more than $24k in some markets (NY, CA, DC).

My property taxes + state taxes will be between $50,000-$60,000 in 2022 depending on how a few chips fall.

[Anonymous User]

BBB is going to be amended in the Senate to put an income threshold on the ability to enjoy the SALT deduction. Senators and representatives have mostly acknowledged that that will happen.

[Anonymous User]

Is the salt thing retroactive to 2021? Would be 180 if so, I'm GTFO my high tax state and going to texas or Florida