There is an upset at Goldman Sachs in America. Having paid its analysts and associates large amounts of money not very long ago, juniors are now being asked to pay huge sums to the internal review service (IRS).
The issue was first reported by Instagram account Litquidity but has been confirmed to eFinancialCareers by Goldman insiders. It's understood to impact multiple juniors at the firm.
Litquidity says the juniors are being asked to relinquish five figure payments to the tax authorities. After increasing analyst salaries last year to $120k, Goldman hiked first year analyst total compensation to around $180k and second year compensation to $220k. A substantial chunk of that appears to have disappeared.
Goldman declined to comment on the issue.
Insiders said the cause of the payments isn't clear. It may simply have something to do with recent changes to tax withholding tables by the IRS. - Some juniors appear to have been shunted into higher tax bands as a result of their pay increases, and are now experiencing the consequences.
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