Sign-up & Re-Sign Up Bonus Guide - Everything you need to know about bonuses (2023)

Enlistment bonuses and enlistment bonuses are just one way the military gets people to join the military or re-enlist for additional service. However, these bonuses are not available to everyone. Bonuses are most commonly used as a tool to get people to apply for hard-to-fill positions, positions with high training needs, and positions with high-paying jobs in the civilian sector.

Let's take a look at the enrollment and re-enrollment bonuses, including how they cost, how they're paid, and what you can expect when you get one.

Get everything in writing - and keep it forever

A verbal promise is a contract. Except when it's not. The military is a huge organization and unless you have a enlistment bonus or a written enlistment bonus, this never happened. There are many stories of recruiters or retention workers promising sign-on rewards on the dotted line. But unless you see it in your contract, it's not official.

You must also keep a copy of your contract forever. Actually you shouldPreserve all important military records forever. Getting copies of it afterwards can be difficult and sometimes impossible.

This is especially important for military records such as contracts, training records, enlistments and recalls, promotions, achievements, and similar records. If you do not have copies of your records, you must contact your local military or personnel office (AFPC, Army HR Command, Navy BUPERS, etc.).

enrollment bonus

Some military jobs are eligible for an initial hiring bonus ofup to $40,000. Please note that this only applies to the most difficult to fill positions and awards are not available for all jobs. The level and availability of awards depends on your job role, job specialty and length of service (typically between 3 and 6 years).

As you can imagine, a 6 year hiring bonus usually pays more than a 3 year hiring bonus. If your work is eligible for an award, you will typically receive it after completing basic and initial technical training.

That last statement is very important - you can enter into a contract that guarantees you an enrollment bonus, but you don't actually earn that enrollment bonus until you complete initial training. so if youfail AIT or Tech School,You cannot earn this bonus.

re-enrollment bonus

Re-enlistment bonuses may be available to current service members when they re-enroll for an additional term, typically in increments of 3, 4, or 6 years. As already mentioned, there are not re-enrollment bonuses for all professional fields. Each branch of service can determine which specialty (Rating, MOS, or AFSC) is eligible for a re-enrollment bonus.

You may be eligible for a re-enrollment bonus if you are a uniformed service member who:

• at least 17 months of continuous active service (other than training) but no more than 20 years of active service;
• is qualified in a military skill identified by the Secretary of Defense or the Secretary of Homeland Security as being critical to the Coast Guard when not on naval service; It is
• transfer or voluntarily renew the Member to a regular component of the relevant Service for a period of at least three years; or as a reserve component of the relevant service if the member serves as active watch and reserve (as defined in Section 101(d)(6) of Title 10).
• They currently do not receive any special remuneration for nuclear engineering training.
• You register again or voluntarily extend your service for at least three years.
• You are subscribing to a regular component of the relevant Service or continue to subscribe to a reservation component of the relevant Service.

How much bonus can you get?Re-enrollment bonuses cannot exceed the lesser of the following:

• The amount equal to 15 times the monthly value of the base salary due to the Member at the time of termination or termination; It is
• the number of years (or monthly fractions thereof) of the period for re-enrollment or extension of enrollment.
• The re-enrollment bonus cannot exceed $90,000.

Note on special loyalty rewards:Some majors are eligible to receive loyalty rewards in excess of $90,000. These are generally limited to those in the medical field, aviators, and those in select nuclear specialties. All of this is analyzed and described on a case-by-case basisUS-Code: 37 US C, Kapitel 5.

How are (re)enrollment bonuses paid?

This is the section everyone wants to read! When you qualify for a bonus you want to know when it will be paid out, right? Just.

Typically, if your bonus is less than $20,000, you can expect to receive it as a lump sum after your contract terms expire. This usually happens after completing the initial technical training.

Typically, if your bonus is more than $20,000, you can expect to receive half upfront (again after training is complete) and spread the rest out over annual installments.

The Navy pays its annual installments on October 1, which is the start of the fiscal year. The other branches of the service will pay the enrollment and re-enrollment premium on the anniversary of the receipt of the first installment.

To update:Recently, a reader wrote to us that the Navy now pays re-enlistment bonuses on your re-enlistment anniversary, just like the other branches do.

Why Annual Rates?The military wants to make sure they get their money's worth. You must continue to meet your Classification/MOS/AFSC standards to continue receiving your Anniversary Bonus payments. Failure to meet technical standards for your career area or failure to meet other standards may result in your ineligibility for bonus payments.

Example:If you have a $40,000 bonus, expect a lump sum of $20,000 after the training is complete (or when your move actually begins). The remaining $20,000 will be paid in 5 annual installments of $4,000 each on the anniversary of your re-enrolment.

Don't forget taxes!Also, taxes are automatically withheld from your bonus, usually at 25% or 28%. This is done automatically by the government and cannot be changed. If the withholding tax is too high for your tax bracket, you'll likely get a larger refund than usual the following year.

What about tax-free bonuses?

The Code of Federal Regulations (CFR), Title 26, Section 1.112-1 coversduty-free combat zones.

In short, money you earn while serving in a Battle Zone is tax-free. This can include your re-enrollment bonus as long as you have signed the re-enrollment paperwork in the tax-free combat zone. This also covers your annual installment awards, even if they come in later, when you no longer serve in the tax-free combat zone.

However, if you signed the paperwork outside of the combat zone, you are not tax-exempt even if you receive the bonus or annual payment while you are in the combat zone.

See US Code - 26 CFR § 1.112-1 - Combat Zone Compensation of Members of the Armed Forces, Paragraph (b), Example 5 and Example 6 for more information.

Call-up bonuses and annual installments when signing papers in the combat zone

From the US Code - 26 CFR § 1.112-1, paragraph (b)

Example 5.

In July, a soldier volunteered while serving in a combat zone. After July, the member no longer served in the combat zone or was hospitalized for injuries sustained in the combat zone. In February of the following year, the member received a bonus for re-registering in July. The Redeployment Bonus may be excluded from Battle Zone Compensation earnings when earned outside of the Battle Zone, provided the Member has completed the necessary actions to qualify for the Reinforcement Bonus in a month that the Member served in the Battle Zone.

Call-up bonuses and annual payments if documents are signed outside the combat zone

From the US Code - 26 CFR § 1.112-1, paragraph (b)

Example 6.

In July, a soldier volunteered while serving outside a combat zone. In February of the following year, the military received a bonus for providing service in a combat zone due to the July enlistment. The re-enrollment bonus cannot be excluded from Combat Zone Compensation income, although received while serving in the Combat Zone, provided the Member has taken the necessary actions to qualify for the Reengineering Bonus in a month in which the Member has not had served in the combat zone or were hospitalized for injuries sustained while serving in a combat zone.

It is not uncommon for people about to be reinstated to apply for a foreign assignment and re-enroll in that location so that they can receive a tax-free bonus. This tax exemption has another important factor, which we will cover in the next section on the savings plan.

Contribution bonus to the savings plan

You are eligible to contribute some or all of your enrollment or re-enrollment bonus to the TSP from 1% to 100% provided your contributions do not exceed theTSP contribution limits mandated by the federal government($17,500 for 2014; $23,000 for ages 50 and older).

However, there are some exceptions.

The $19,500 contribution limit applies to taxable income only. If your bonus is tax-exempt, you can contribute up to the annual co-payment limit of $57,000 ($63,500 for over 50s). You can contribute up to $19,500 of your base salary and up to $37,500 of your bonus to reach the $57,000 threshold.

To take it a step further, tax-free TSP contributions are extremely valuable as the income has never been taxed. This gives you some advanced retirement planning options should you decide to go down this route (let's save that for another article).

Redeeming a bonus – refunding your bonus

This is the part that no one wants to read but needs to understand. When you receive a bonus you are on the hook for the life of your contract. You may owe the government a prorated refund if you fail to meet the terms of your contract. This is based on the amount you received and the time left on your lease.

Reasons for a refund of your bonus may include but are not limited to: voluntary separation, misconduct, failure to meet standards, failure to meet technical qualifications, cross-training in a new career area prior to the completion of contract terms and possible other reasons for this.

In general, you are not required to repay any part of your premium if you are unable to work due to illness, injury or any other reason beyond your control. This could include involuntary retraining in a new professional field. Be sure to speak to your finance and human resources office for verification.

Note on the reimbursement of the early separation allowance:In the case of a voluntary early separation, you will usually have to refund part of your bonus, but this may depend on the reason for the separation. Bonus refunds have sometimes been waived for term reduction (RIF) actions, but only in cases where the agency has specifically waived the requirement. In other words, don't take it for granted! Be sure to read the contract you signed when you received your bonus and the contract you sign to part ways ahead of time. The terms determine whether you have to cash out your bonus or not.

Meet with your finance and/or human resources department for more information:If it is determined that you owe Uncle Sam a refund, make sure you know how much you owe and how to pay it. Your finance or human resources office should be able to help you with this.

Which jobs offer a hiring or re-enrollment bonus?

Good question, sorry but I can't answer it because it's a moving target. Each branch of service determines which specialties are eligible for hiring or reinstatement bonuses, and these often change based on service needs. They usually change annually but can sometimes occur more frequently. Also, these lists are not always made public, so you usually have to go to a recruiter or retention agency to see the list.

If you areconsider joining the army, you will need to speak to a recruiter to find out if a bonus is available to you. If you are currently on duty, you can usually find a list on your service website or by contacting your staff or custodian.

An advice:Don't just do this for the money. A bonus is nice, but make sure that 1) you want to cash it out; They don't just join the military for a fat bonus and 2) want to serve in the job that offers the bonus. Nothing will prolong the next few years like a job you hate. First secure happiness, then money worries.

What if I never receive my bonus?

Several readers have left questions in the comments section or emailed me asking what to do if they never received their enrollment bonus or re-enrollment bonus. This is not an ordinary situation and each case will be unique. This is how I would deal with it:

Visit your HR, Human Resources (HR) or Retention office. These are the entities that do the paperwork for enrollment and re-enrollment awards. They should be able to give you an idea of ​​whether or not you have met the bonus requirements and can help you make sure all your paperwork is in order. They can refer you to the tax office if you meet the requirements but the bonus has not yet been paid. Keep in mind that there may be a delay between earning your bonus and withdrawing it.

What if you already separated from the army and never received your bonus?This is a complicated situation that we have often been asked about. The best I can say is to check your contract and see if you should have received the bonus. Every contract is unique, so I can't offer much advice other than reviewing it thoroughly. From there, you should contact your branch's key service personnel (AFPC, Army Human Resources, Navy BUPERS, etc.). Have them review your contract and see what you should do from there.

You can also contact Defense Financial and Accounting Services (DFAS) as soon as you have your documents in hand. You must review your contract and all your payslips to confirm that 1) you should have gotten the bonus and 2) you never got it.

Is there a statute of limitations?I have no idea. The military is not afraid to go after people who owe them money. So it stands to reason that if you sign a contract, you can claim and get the money you are legally entitled to. Note that this process will likely take some time as all records must be verified before payment is authorized.

Don't have a copy of your contract?Again, you will need to contact your staff or Human Resources to try and get a copy of your contract. You may need to contact your guard or reserve unit if you have served in the reserve component rather than active duty. Each branch of service retains records for a specified period of time before they are sent to the National Archives. So, depending on how long you've been out of the military, it may take some time to follow up on your records. As with anything, you must be patient.

Read more:

• Enrollment and re-enrollment bonuses are part of the U.S. Code: 37 US C, chapter 5,subchapter 1(§ 309– enrollment bonus), (§ 308– re-enrollment bonus)
• There are special sections of the United States Code that cover certain difficult subject areas, particularly those in the medical, aviation, nuclear engineering, and other professional fields. These are also listed in subchapter 1.
• Contact your recruiter or human resources office for more specific information on rewards you may receive.And as always in writing!

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