I haven’t had one of these posts in a while, but feel free to continue to send your questions my way. I had written a post about asking and receiving an extension bonus at one of my assignments. A reader asked:
“Is there a reason you asked for a bonus instead of a higher hourly rate since bonuses are taxed so high?”
My response was: when extending an assignment, the agency/site will typically agree to a $5/hour increase in rate. For a 3-month assignment, this is only a $2500 “bonus”. So, by asking for a $5000 bonus, I am technically getting more. I also like the idea of a bonus because they pay it up front, so the money is in my hands sooner than later to invest etc.
I also commented on how my bonuses are often in Florida where there is no state income tax, so this is an additional win. When extending, I love to receive a bonus. When returning to a previous assignment, that is typically when I will ask for a $5-10/hour raise (when changing sites).
Everyone does it differently, but in my experience sometimes sites/agencies are reluctant to give a raise for an extension and will often try to only offer a couple of dollars more per hour.
With the site that often gives me extension bonuses, my first assignment with them when they asked me to extend, I asked for an increased rate, but they told me no. However, after I completed the extension they gave me a $5000 bonus as a “thank you” (without me even asking). So, I realized then that they are more likely to give a bonus than increase my rate, so that’s why I continue to ask for extension bonuses instead of increasing my hourly rate.
