Potential Job Change!?

[CincinnatiKid]

Hi all.
I've been offered a position with a competitive company. Same pay and benefits, but with a hiring bonus. This position would also be much less demanding and stressful.
I've worked for the same company now for 14yrs. I've had major issues at times, but we all do.
If I take new job it will surely" burn a bridge" to where I'm currently employed.
This said, I pose my question; have any of you quit a job to go the competition? If so, what was your personal benefit or outcome?
Believe me, I realize " the grass ain't always greener".
Your thoughts please...
Peace

 

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[Treasure_Hunter]

Hi all.
I've been offered a position with a competitive company. Same pay and benefits, but with a hiring bonus. This position would also be much less demanding and stressful.
I've worked for the same company now for 14yrs. I've had major issues at times, but we all do.
If I take new job it will surely" burn a bridge" to where I'm currently employed.
This said, I pose my question; have any of you quit a job to go the competition? If so, what was your personal benefit or outcome?
Believe me, I realize " the grass ain't always greener".
Your thoughts please...
Peace

I have and I know friends that did..

Is there a vested pension involved as pensions pay out according to time of service?

Is there a chance of current company buying prospective company as it could come back on you...

"Much less demanding and stressful" is a major benefit to consider, especially the stress part. Stress is bad for your health and relationships.

If I had stayed 4.5 years longer my pension would have been about $500 more a month than what I am now drawing on that same pension.

With that said the job change in the long run lead to more opportunities in my career and less stress.

Former job was on the road I was out of town for week at time coming home on weekends some times every couple weeks and it involved driving 8 to 10 hours to get home. New job involved no working out of town and all travel i do now is on the clock...

 

[DeepseekerADS]

As a contract engineer for 40 years, I have worked for 37 companies. Some jobs or projects completed, or the lure of better money prevailed.

I'm retired now (for 3 weeks!). But I never, ever had a problem quitting a job to work for another company. After all, we are always replaceable, so why not replace them instead. Personally, I'd easily go for it.

 

[1320]

Something else to consider is your vacation/sick days. What is the employee turn over ratio at the new place? Personally I wouldn't give up 14 years for the same money..the signing bonus is nice but it's taxable income and won't last long anyway. 14 years there, I think you're safe. I would argue in your favor that the quality of your life is money.

I worked 10 years for a company, left them for a direct competitor for 30k more per year....9 months later I was fired. There was no way I could go back to the old company, I knew that before making the decision. I got the new company up and running, making money then bam, out of the blue, I was fired. The competitor that I went to work for essentially bought my corporate knowledge then let me go. A few weeks later my replacement was hired...30k less than I was being paid.

Which brings me to another point to consider....have something soft to land on in case your fired....have something in the bank to fall back on. As we get older, we become more unemployable, no matter our skill set.

 

[1320]

Can you use the new opportunity as leverage with your current company? Maybe get a raise or perhaps get some stress taken off your back? If you give them notice, will they fire you on the spot? If than happens, you might be without a paycheck for two or more weeks......

 

[hvacker]

I've known companies where loyalty is held very high even over ability. Other companies know an employee worth their salt will have an eye on their career and wish them luck being happy to have had the service.
All depends.
After 14 years you might be seen as being where you are and not seriously considered for advancement. It happens. People get pigeon holed.
A very hard task is to change a company's ideas about you.
A lot of times a company will hire outside for a position even though someone in house could fill it.
A profit is not without honor save in his own country. (somewhere in the Bible)

 

[DeepseekerADS]

Cincinnati, I'll take back my personal hatred for corporate America. I have to agree with 1320, and he is correct on the sign on bonus as being taxable - yep, one time payment get's hit pretty hard. And just what's the deal on that? Do you have to repay it if you don't stay a year? You'd have to pay back the full amount, not the heavily taxed portion you received.

Could be a bargaining chip with your current company, but you'd better be careful about that!

Once upon a time, a long time ago, I was in a private meeting with the plant manager of Perry Nuclear Power Plant, and his immediate subordinate. We were interrupted by staff with a senior reactor operator who had turned in his resignation. While I was sitting there, the individual was escorted in. The plant manager massaged the operator up and down and convinced him to stay. The operator walked out, and when the door closed the plant manager turned to his subordinate and said "Get a replacement".

And that's the way that works.

You've a very tough decision. But in today's employment times, play it close to your vest, think about your family, think about your future. If your are not comfortable, don't make a decision yet - put it off. Many times in my 37 companies I've regretted my decisions.

Keep the faith!

Roger

 

[SusanMN]

Worked in HR for over 30 years, saw lots of people come and go, and changed jobs a few times myself. Provided you were a good employee, and give a two week notice, you will not burn bridges when you leave. In most cases at most companies , good employees are welcomed and wanted back if they find the grass isn't greener.

 

[Red James Cash]

the signing bonus is nice but it's taxable income

Its also lump sum income,the tax on it is 50%.

 

[Treasure_Hunter]

Taxes will depend on how new company wants to issue bonus as they are who decides bonus tax structure


Bonuses Are Considered “Supplemental Wages”.

Bonus Taxes

If you read the tax code, you will notice that the Internal Revenue Service goes to great lengths to categorize different types of income and treat them differently. Bonuses are another example of this. In the eyes of the IRS, bonuses are typically categorized as “supplemental wages.” As a*University of Minnesota*summary explains:

“The IRS defines supplemental wages as compensation paid in addition to the employee’s regular wages that includes, but is not limited to, severance or dismissal pay, vacation pay, back pay, bonuses, moving expenses, overtime, taxable fringe benefits, and commissions.”

As such, bonuses (like other supplemental wages) are treated differently than ordinary wage or salary income. There are two ways of taxing bonuses: the percentage method and the aggregate method. Which method gets applied to your bonus? Let’s find out.

The Percentage Method

The IRS specifies a flat “supplemental rate” of 25%, meaning that any supplemental wages (including bonuses) should be taxed in that amount. If you receive a $5,000 bonus, under this rule, $1,250 (25% of $5,000) goes straight to the IRS. Using this approach, the amount of your bonus – whatever it is – is “singled out” from the rest of your income and taxed directly. Employers frequently choose the percentage method because it’s easy and mindless to tax the entire bonus at a uniform rate.

In most cases, this is ideal from your standpoint as the bonus receiver and taxpayer, too. The aggregate method (described below), in addition to being more time-consuming and laborious for employers, can take a bigger tax bite out of your bonus payments.

The Aggregate Method

Unlike the much simpler percentage method, the aggregate method is when your employer adds the amount of your bonus (say, $5,000) to your most recent regular paycheck. Then, they determine the normal withholding amount based on IRS withholding tables for the sum of both amounts, subtract what was already withheld from your last paycheck, and withhold the rest from the bonus amount.

The problem with this approach is that instead of being taxed at a flat 25% – and having that 25% rate apply only to the bonus amount – you get taxed at what is almost certainly a higher rate on thecombined*amount of your normal pay*and*the bonus. The result: a higher overall tax obligation for the same amount of income.

Here is a*free bonus calculator*based on the aggregate method. Use it to determine your bonus-related tax obligation should your employer choose this approach.

http://blog.turbotax.intuit.com/2013/11/11/how-bonuses-are-taxed-calculator/


http://blog.turbotax.intuit.com/2011/12/09/bonus-time-how-bonuses-are-taxed-and-treated-by-the-irs/

 

[Red James Cash]

They changed it then TH.When I was illegally fired once(about 10 years ago)the company settled out of court and I was owed all the back pay which came to 4400 bucks,I received a check for 2200 bucks.

 

[Treasure_Hunter]

They changed it then TH.When I was illegally fired once(about 10 years ago)the company settled out of court and I was owed all the back pay which came to 4400 bucks,I received a check for 2200 bucks.

Probably changed it several times. On my last severance package in 2002 I was taxed at 25% before payout...

 

[Red James Cash]

It might of been under different circumstances also.The 4400 was my salary from the time I was fired to when they were forced to rehire me.

 

[Boatlode]

Go for the money. You're always one paycheck away from a pink slip.

 

[DeepseekerADS]

I'd say that companies tax those bonuses as leverage against you should you quit before the contracted time period. I know that when I took a position with a mechanical contractor in Newport News, Virginia in 2009, I was to receive $8,000 in moving expenses. Of that I received $4700 after taxes. I absolutely hated the company, all those smiles and offered friendship immediately turned into a sweat shop after I signed the paper. I could not do enough to please them, more, more, faster, faster! From the 1st of January, 2010 to the 1st of August, 2010 I put in just over 2000 hours at work - a year of 40's is 2080 hours. Quit, I thought heavily and seriously about that day after day. But, per the contract, I'd have to pay back the full $8,000.

When the year was up, I gave them two weeks notice, and a day & a half into it, I packed and left. To H E L L with them! Landed another position right away.

In today's employment market, there be sharks in the water. Be careful what you wish for.

 

[CincinnatiKid]

Thank you all.
I "liked" every comment as all are varied. That is exactly what I needed.
My decision must be made by Monday at 3pm. Lot to think about..
Hiring bonus is to be cash, therefore non- taxable.
Still, I like nearly everyone at my current job. Then again, the prospective job appears great.
One good thing is for sure, I'm "diggin" tomorrow!
Thanks all
Peace

 

[SusanMN]

If this company is saying a bonus in cash, I assume they don't mean handing you actual cash. This would be an extremely unusual and non-standard payment method and would concern me greatly about the ethics of the payment and company. If the "cash" is a check, them it must have at least federal taxes withheld and be reported to the IRS and state as wages in the form of a bonus.

Companies do not "tax" bonuses. They withhold taxes from the payment usually on a flat tax withholding basis, and then send in this additional withholding to the IRS and state department of revenue if applicable. At the end of the year all of your wages and bonuses get lumped together for income tax purposes and you settle up with the IRS via your tax return. While additional wages in the form of a bonus may kick you into a higher tax bracket, the bonus itself isn't taxed at a different rate. You will either owe more tax or get a refund based on taxes due and your with holdings.

 

[DFX DAVE in M.D.]

Cinci are you sure the new job is less stressful and better then your current job. I have been hired by a few companies and HR would paint a pretty picture of the company, I was looking forward to those 40 hour weeks, then after a few months of 50 to 60 something hour weeks, I was going wow, this sucks, lol.

 

[CincinnatiKid]

Thanks again all...
I'm stayin' put.
New opportunity seemed good and the establishment was sound.
I just don't need a major life change at this point.
Peace

 

[Higgy]

Go for the money. You're always one paycheck away from a pink slip.

This is my stand, but I wouldnt leave without a bonafide raise and adequate vacation time. Starting a new job at newbie vacation amount sucks. Here's the thing: If you are getting a signing bonus, thats nice - they obviously recognize the talent. However, when that cash is spent, you are stuck with the same job, and the lesser stress and workload will increase to your breaking point again. You know this is true, CK. It always is.