Photo: Ben King | armour Down
When prominent Biglaw firm Weil Gotshal announced it wouldn’t pay out employee bonuses until January 2013, associates immediately accused the firm’s leadership of trying to screw them come tax season.A tax hike is expected to go into effect next year, meaning Americans should probably “prepare for taxes to go up in a big way in 2013,” TIME reported last week.
prepare for taxes to go up in a big way in 2013
Read more: http://business.time.com/2012/11/15/the-many-ways-your-taxes-could-go-up-in-2013-even-if-youre-not-rich/#ixzz2DXLh7R1kSo the fact that Weil won’t be issuing bonuses until after the tax hike hits has definitely rubbed associates the wrong way, according to Above The Law, which first reported Weil’s decision and has been fielding angry associate responses ever since.
One associate speculated the firm wanted to wait until 2013 because companies can deduct such bonuses from their own taxable income, and Weil wanted to do so after we go over the fiscal cliff.
In any case, getting bonuses after the New Year isn’t great for associates, since it could push them over the dreaded $250,000 mark next year and force them to shell out significantly more in taxes.
Here are a few of the responses associates have sent ATL:
- “Given the expected tax hikes, the only thing that does is screw associate tax bills for next year (in favour of the partners). Unbelievable.”
- “In a huge slap to the face of associates, Weil just said they would pay bonuses in January. Considering they’ve paid bonuses in Dec the last two yrs…. Weil continues to have deteriorating morale. They have us slaving away in December so our clients can sell companies before year-end; they are painfully aware of the rising tax rates.”
A Weil spokesperson told ATL the firm is just following its usual practice of waiting to pay bonuses until after the new year.
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