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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?

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).

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.