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Junior bankers at Goldman Sachs have had a tax shock.

Goldman Sachs juniors asked to repay huge amounts of tax

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.

Best comment picked by the author
Brilliant financial minds shocked to learn that taxes increase as income increases.

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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Photo by Kelly Sikkema on Unsplash

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AUTHORSarah Butcher Global Editor
  • th
    theusernamezachalreadyexists
    13 April 2022

    Brilliant financial minds shocked to learn that taxes increase as income increases.

  • St
    Steve
    12 April 2022

    I don't understand this article, is it just, people made more money and owe more taxes? or are you saying they're being taxed on comp they didn't receive? you close the article with "some juniors appear to have been shunted (meaning pushed??)into higher tax bands as a result of their pay increases." I mean, sure yeah, guy wins lotto shunted into higher tax band. where's the news?!?!?

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