SIGNING BONUS – VC LUMP – 401K
It’s finally here ! The JCBA included a signing bonus and, for those who qualify, a vacation lump sum payout. Your 401k’s have been changed from the 5.5% Company match to a 9% contribution.
Signing bonus will be visible in your ePays by May 20th, you will have access to the money on May 22nd. The bonus will be taxed at the “supplemental rate”, about 22%, for Feds and State and Local taxes will also apply. The bonus is eligible for 401k contribution and the company match, but it is not eligible for any special elections.
Vacation Lump Sum payout is also coming (separate check) on May 22nd, visible on May 20th. As with the Bonus, the higher tax rate and the same 401k terms will apply with your VC payout.
Questions on either the Bonus or VC Payout can be directed to Payroll Service Center by email at email@example.com. Questions about the VC calculation of hours contact firstname.lastname@example.org.
401k is still being programmed into the Fidelity’s systems; this could take until January 2021 to complete. In the meantime, you will not see the Company’s contribution on your paystubs. The Company’s contribution will be 9%, even if you do not contribute to the plan – you should see this in your Fidelity account by June 11th. After the first of the year you will receive 5% whether you contribute or not and an additional 4% match.