Expert: Cynthia Bedell - 8/31/2008

Question
my son joined the army national guard with a $20,000 sing on bonus. He got back from AIT on July 25th and we are wondering how long it will take to get his first half of his bonus? His recruiter told him he would get it within 30 days ,but he still has not gotten it .

Answer
Dear Terri --

Your son should get his first bonus payment on the end of month payday that is at least 30 days after he graduated from AIT.  It will be an electronic deposit in the same bank account he receives his regular military pay and earnings.

A Soldier cannot receive more than $10,000 per year in bonus payments.  Bonus payments are income, so income tax will be withheld on that $10,000.

Please review your son's enlistment contract with him, and ensure the final contract he signed at MEPS includes a clause authorizing the bonus.  I have heard of a number of "bait and switch" contracts where the recruiter shows the recruit a draft enlistment contract with the bonus annotated, but then brings a contract to MEPS that does not have the bonus clause in it.  Also review the pay out schedule of the bonus.  Generally the pay outs are spread out over the service period, as an incentive to maintain good performance.

Please write back, if you have other questions.  Good luck to you and your son.