Incoming BigLaw first year here, considering whether to take my firm's $10,000 salary advance option. Firm requires us to pay it back via salary reductions.
Just wondering if there are any hidden issues to be aware of. I'm guessing that they will not withhold any tax on it. Is this treated like a below market interest loan for tax purposes? Or is it just lumped in with salary comp?
BigLaw new associate salary advances Forum
Forum rules
Anonymous Posting
Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.
Failure to follow these rules will get you outed, warned, or banned.
Anonymous Posting
Anonymous posting is only appropriate when you are revealing sensitive employment related information about a firm, job, etc. You may anonymously respond on topic to these threads. Unacceptable uses include: harassing another user, joking around, testing the feature, or other things that are more appropriate in the lounge.
Failure to follow these rules will get you outed, warned, or banned.
-
Anonymous User
- Posts: 432509
- Joined: Tue Aug 11, 2009 9:32 am
-
Anonymous User
- Posts: 432509
- Joined: Tue Aug 11, 2009 9:32 am
Re: BigLaw new associate salary advances
I took my firm's salary advance. I looked into it and didn't see any downsides. The biggest risk, I suppose, is if you're going to leave before the entire amount has been paid, because then you're potentially looking at one lump payment that's bigger (although circumstances might vary from firm to firm depending on why you're leaving/if there's an expectation that you'll be coming back).
-
Anonymous User
- Posts: 432509
- Joined: Tue Aug 11, 2009 9:32 am
Re: BigLaw new associate salary advances
At my firm it is essentially an interest-free $10,000 loan. They didn't withhold any taxes and it is paid back over 12 months as an after-tax salary deduction (something like $400 per check). I guess the only downside is if you leave before it has been fully repaid and you need to come up with the balance.
