50k sign-on bonus
- 0Aug 18, '04 by ethelbsnrnI received an invitation letter from one of the hosp in Mc Allen, Texas offering a $50k sign-on bonus in exchage of working there for 4 years. It sounds like a good deal, a very good one, indeed. I emailed the HR dept and they confirmed the authenticity of the letter. But, I wonder if there is a catch with that. Have you heard of this? Any nurses out there who took this offer? I want to know your side of the story.
With my husband and me, we'll be having a 100k in our bank account, isn't that tempting?
- 0Aug 18, '04 by hoolahanI am in NJ, but...WOW!!
Although... any place that desperate may be a true pit. That is my only concern. And four years is a looooooong time to work in a pit. When you think about it, it's actually like $12500/yr. Ask how they pay that, if you can keep pro-rated portaion if you have to leave. Also, this money is taxable, so if it is all up front, which I highly doubt, it will be significantly less than 50K. The highest sign-on I have ever seen here is $15K for CT OR nurses, very specialized, and required X # of years expereince, etc...
- 0Aug 18, '04 by Sheri257Quote from hoolahanI'm in California and, double WOW!!!! :chuckleI am in NJ, but...WOW!!
It does make you wonder about the working conditions. I also wonder under what circumstances could you leave, if you could leave at all. Would you have to pay the money back, and under what interest rate or other requirements?
- 0Aug 18, '04 by llg GuideWell ... let's start by considering that this place is probably a terrible place to work (and/or to live) or else they wouldn't be offering a sign-on bonus like that.
Second, let's consider the taxes. If you pay a typical tax rate, you'll probably end up with no more than $30,000 - $35,000 in actual take-home. That's just under $9,000 per year.
Now, I wonder what their hourly pay rate is? ... and how much it would cost to move there? ... and what would the quality of your life be living in a place where you don't have friends, family, etc.? ... Do you think you might find yourself spending money on things like vacations, long-distance phone calls, etc. because of the stress of living and working there?
So ... in the end ... how much "profit" would you really pocket? I doubt it would be nearly as much as it may first sound, and I doubt it would be worth the stress.
Now, it's a different matter completely if you know the place, have friends/family there, want to live there, etc. In that case, and extra few thousand a year would be a good thing (unless their base salaries are really low to begin with.)
- 0Aug 18, '04 by smk1i had a friend that graduated in Oregon last year and a hospital in a slightly rural texas area flew her down for and interview and paid for a rental car for her and put her up in a nice hotel for the weekend. was offering over 10k sign on bonus as well. (can't remember exactly where in texas though) anyway she went but upon seeing the area she wasn't impressed. Too hot and humid, nowhere to go on weekends not a pretty area, so for her just not worth the move away from friends and family. But i have heard quite a few mention large bonuses being offered in the texas area.
- 0Aug 18, '04 by DixieleeFour years is a long time to commit to anything that you are uncertain of. I worked at a hospital last year that was paying about $10K for a 2 year committment. They did give it all within the first 6 months, but you would have to pay back a prorated amount if you left before your contract was complete. One thing to ask as well, is if you can transfer within the facility, change shifts, etc while you are there. Some want you to stay in one area, night shift, etc and you would be unable to take advantage of any improvments if they were available. Ask about manditory overtime, staffing ratios etc. If you are looking to save some quick money for a house or major purchase, you may want to look into agency or travel nursing as well. It is a nurses market right now. I may take a sign on bonus for 1 or even 2 years if I knew for sure what I was getting into, but 4 years is too much for me.
- 0Aug 18, '04 by Sheri257There might be other tax considerations as well.
If the $50K was pro-rated over the four years, that would be one thing. You probably wouldn't take much of a tax hit since, basically, it would be counted as your regular income.
But if you were paid the $50K up front, you probably would have to claim that $50K as income all in the first year. That could bump you into a much higher tax bracket, and a much bigger chunk of that payment could go to taxes.
Just something you might want to check into.
Last edit by Sheri257 on Aug 18, '04