Hurry up dh and come home so I can see the damn paperwork!
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03-11-2015 12:00 #21
03-11-2015 12:25 #22
I'm thinking there has to be a catch somewhere.
There is a huge difference between an extra $30 per week and $12500 every six months. I can't understand why they would make two different offers that vary so differently in terms of $. I'm naturally pretty cautious and would be concerned they are predicting a downturn in the market.
Having said that, Option 2 is the obvious choice regardless of any taxation ramifications.
03-11-2015 12:37 #23
03-11-2015 12:44 #24
03-11-2015 12:56 #25
ETA being that it is a % of profits (however profit is defined) it's not dodgy. They obviously can't predict their profits so have given the OP's husband a ball park based on past performance.
@SheWarrior with my DH's arrangement he always focuses on his monthly wage and any bonus is just that, a bonus. We never count on it, rely on it or expect it. If the base salary is sufficient for your needs go for the bonus. If not, maybe he should focus on negotiations for a better base salary.
That's what I'd do.
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03-11-2015 12:59 #26
03-11-2015 13:16 #27
03-11-2015 14:48 #28
Oh I would be careful with option 2......there are many ways a company can influence profit. For example the owners may have a massive year and decide to increase their own salaries significantly which then reduces profit that your dh's bonus will be calculated on. There are a lot of costs that go through a business that will not be influenced by the hard work your DH does and I have previously worked in a business that had a similar structure that made little "profit" but paid many expenses through the business for various family members who were "employees" so this then dilutes commissions/ bonuses that are paid to sales people. Ultimately you have more potential to earn greater money through option 2 than option 1 but I would only go for option 2 if you don't need the extra $30 a week......... Good luck in deciding.
03-11-2015 18:40 #29
Sure profits can be manipulated but it wouldn't be a smart idea to do so to avoid paying bonus to your employees.
Unless you'd want your employees to quit.
03-11-2015 18:46 #30
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