Enlistment bonus question??

[HMkaylor]

I have looked around for the answer to my question and can't seem to get a clear answer. I signed up active duty and to my suprize I got a $6000 enlistment bonus in my contract. I was just wondering when I will get this money and if it will be the whole thing at one time? I read somewhere that you get 20% upon completing boot camp and the rest upon completing "A" school. Is this true? The only reason I ask is because I have a car loan I want to pay off with the money. Any information would be great . Thanks yet again!

[indy]

Enlistment bonuses will usually be given as a lump sum paid after the completion of training, (boot camp, A school, etc) and when you report to your initial duty station. This is different from re-enlistment bonuses which are paid in intervals.

[8404]

Kaylor:

Don't forget the Navy will withhold appropriate taxes, reducing that $6,000 a tad!

[docfish]

HMKaylor,

Have you made absolutely sure your contract says "ACTIVE DUTY"? I know many sailors who got all the way to A school, and realized "Hey, wait a second, my contract states Reserves/NPBS (sp), not active duty"!!! They had no idea, and after A school they were sent home and attached with the reserves or sent to a Marine unit for active duty for 15 months. I maybe a little confused on the issue, but I'm just wondering.

[8404]

docfish;

You are not confused, this 'has' happened to some Sailors! I couldn't believe it either, when I first heard of it.

The 15 months AD you reference was/is part of the Reserve NCS program!

[HMkaylor]

Yea IM active duty I double checked today. Although I do think it is a little odd that IM getting a sign on bonus because from what I have seen on this website and others is that right now only reservs get them. I talked to my recruiter yesterday and he told me I would recieve my money after completion of "A" school. He said that was what my bonus was for "going corpsman that is".

[docfish]

HMKaylor,

Get that in black in white asap then! Everything on paper, you'll learn this soon...

[8404]

Here is the link for Enlistment Bonuses (http://www.cnrc.navy.mil/EIncentives/default.htm)


Frequently Asked Questions (http://www.cnrc.navy.mil/EIncentives/EB%20_FAQ.htm)

[HMC-FMF-PJ]

Okay the $6,000 question that I am surprised no one has asked is:

What is the bonus for?


Depending on what the bonus is for often determines when it is paid.

Often times you select the payment terms (lump sum, 50/50, anniversary payments, etc) on the same paperwork as the bonus itself, so check your bonus paperwork.

Your expenses should drop to near zero in RTC and A-School. It is a great opportunity to pay off bils and build a rainy day fund. In addition to building a rainy day fund, you should also start investing 5-15% of your pay in TSP. Take advantage of the opportunity. Do not go shopping for toys, treats, or drinks with that money. You will need it later. Obtaining real financial security gives you more opportunities and independence than you can imagine. Unfortunately most young adults with their first wad of cash often piss it away on nothing and even dig themself a huge hole of debt.

[HMC-FMF-PJ]

A game you can play to keep most of your money and avoid giving the IRS a free loan with your bonus is to adjust your W4. Be careful and use with caution because if you do it wrong you could screw yourself.

Part 1:
=Estimate your income tax obligation for the year (if you make this much $$, you'll pay that much taxes), and include the bonus in your estimate
=Determine if your current FICA witholding rate will meet that tax obligation (it usually does)

Part 2:
=Then figure out when the bonus is to be paid
=When the bonus is about due to be paid, file a new IRS W4 to max allowances (10 to 19 depending on situation). This will minimize the FICA withholding taken out.
=Once the bonus is paid, file another IRS W4 to immediately return your allowances to normal levels (commonly 1-3)

Part 3:
=MOST IMPORTANTLY maintain a safety net of cash in the bank in case your calculations are off and the IRS wants more money for taxes next April 15.


Warning: If you miscalculate your tax obligation and fail to maintain a safety net of cash to fix that error when the taxes are due then you might possibly go in debt with the IRS and they don't play fair. They can hit you with big fines and penalties if you screw this up.

I liken it to parachuting: If you know what you're doing, jumping out of a plane is incredibly easy but most people are afraid to do it and if you do it wrong there can be serious consequences. And the fact that death and taxes are your only guarantees in life... ;-)

[Christoff]

I thought only reserves got a bonus?

[indy]

Not always, there are options out there, but recently have dried up because of the economy and less of a need to entice new folks. Active Duty HMs can still receive a language proficiency bonus for example (specific criteria must be met).

[indy]

Yea IM active duty I double checked today. Although I do think it is a little odd that IM getting a sign on bonus because from what I have seen on this website and others is that right now only reservs get them. I talked to my recruiter yesterday and he told me I would recieve my money after completion of "A" school. He said that was what my bonus was for "going corpsman that is".

This is odd, even more so after reading HMC-FMF-PJ's post. Can you confirm what the bonus is for? I can't find anything in the recent recruiting message traffic about bonuses for Active Duty HM. Also when did you DEP in?

[HMkaylor]

I depped in in October of 08 so I think that is the reason Im getting a bonus. But the bonus is for extending my enlistment I think. I signed up for 5 years.

[jeepinva]

Everyone signs up for 5 years for HM as far as I know.

4 years with a 12 month extension. :panda:

[indy]

Congratulations HMKaylor! After reviewing the bonus message for when you DEPped in (DTG 211700Z AUG 08 - found here: http://www.cnrc.navy.mil/EIncentives/N5311%20EB/EB/Released%20EB%20Messages/FY08/211700ZAUG08.doc), both HM and HMDA 5 year options were authorized a $6000 source rating enlistment bonus. This was applicable to anyone who had a ship date of June through October - but provided nothing was changed, and all requirements were met, applicants could keep their bonus even if the ship date changed. Your bonus will be paid after completion of A school according to the message.

[HMkaylor]

Thanks indy I was starting to wonder why I got an enlistment bonus and not everyone did. I guess I depped in just at the right time then.

[Christoff]

Congratulations HMKaylor! After reviewing the bonus message for when you DEPped in (DTG 211700Z AUG 08 - found here: http://www.cnrc.navy.mil/EIncentives/N5311%20EB/EB/Released%20EB%20Messages/FY08/211700ZAUG08.doc), both HM and HMDA 5 year options were authorized a $6000 source rating enlistment bonus. This was applicable to anyone who had a ship date of June through October - but provided nothing was changed, and all requirements were met, applicants could keep their bonus even if the ship date changed. Your bonus will be paid after completion of A school according to the message.


What!? I missed it by a month! (November)

Ah well. Not getting into it for the money. But still!

[DannyelC_HM]

I depped in 20081021 and I too got a $6,000 EB.
btw, I'm AD, HMDA 5/YR. I inicially wanted HM but since they merged together, the classifier told me they are the same thing(program). it's that true?,

[Christoff]

It's talked about in this thread. I think you're correct.

http://www.corpsman.com/forum/showthread.php?t=50925

[jeepinva]

"What!? I missed it by a month! (November)

Ah well. Not getting into it for the money. But still!"


You'll survive Christoff.

[indy]

Yep, bonuses come and go pretty darn quickly, even more so right now. Sometimes its luck, and othertimes it's just being in the right place at right time. I always looked at the bonus issue as icing on the cake if it ever happened. For the HM rating, especially for the quad zero folks, trying to get a bonus felt harder than winning the lottery at times. Historically bonus for HM have been few and far between as most everyone wants to join this community, but for those who did get it, you should feel priviliged - those who didn't, you don't get special treatment by receiving a bonus...