Big 4 Tax in NYC – Asking for a raise for MST?

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    Topic
  • #199583
    taxman2000
    Participant

    Hey guys, I will be starting with a Big 4 Tax firm in NYC in a couple of months. At the time I completed my internship last summer and received my full-time offer, I was finishing up my BS in Accounting and didn’t really think about getting the MST. However, since then I enrolled in an MST program and I will probably be finished at the end of the year.

    I’ve heard a lot of conflicting information regarding the raise that some people getting for getting a Master’s when they are in tax. Some people say that you’re expected to have the 150 so you don’t get a raise, while others talk about $10K+ pay bumps.

    Does anyone have experience with how the Big 4 particularly in NYC deal with pay increases and MSTs?

Viewing 11 replies - 1 through 11 (of 11 total)
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    Replies
  • #755100
    Son
    Participant

    I know for a fact they factor in your MST when giving the initial offer. I.e., people without MST would get paid less than people with a degree. If you have already signed your offer it won't hurt to check with HR, but you might have to wait until the next promotion cycle. Keep in mind that it's better to raise this question in the spring (if your fiscal year starts in the fall), otherwise there won't be much room in the budget left.

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    #755101
    jm962011
    Participant

    taxman, can you tell me about your offer details? I just got an offer at a #5 firm in Boston. Salary is $63k plus $1,000 sign on bonus. I already have my CPA because I've spent 3 years in industry, I'd be coming in at a “level 3 associate” which is ok because I have sales and use experience, not necessarily corporate income tax, just curious since our markets might be similar.

    I live way out in the burbs so I have to consider communicating and wish they'd pay for me to park in the garage ($500 a month :-x)

    #755102
    taxman2000
    Participant

    @jm962011 – Mine was for $59K with only the CPA bonus straight out of college recruiting. It seems like you got a good offer!

    #755103
    taxman2000
    Participant

    @Son – Thanks for the advice, I will be sure to do that. Would you happen to know what the typical tuition reimbursement policy is at the Big 4 for advanced degrees beyond the 150? Due to high school credits, I'm already past the 150, and the MST will set me at 180 credits, so I was hoping that would qualify.

    #755104
    Son
    Participant

    I only know how the system works for current employees unfortunately, and I believe you need to be working full-time for at least a year before you become eligible. It's about 10K annually for qualifying degree or non-degree programs (i.e., the ones that would advance you as a professional in your field). Approval is necessary from your partner and/or regional leader. MST would typically be reimbursed, but what you would need to check on is whether you can get reimbursement after the fact. As far as I understand you'll be done with your program by the time you start employment?

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    #755105
    taxman2000
    Participant

    @Son I will be done with almost half of it, but given what you said I guess I would rather finish it and get the raise earlier than wait the year for the tuition reimbursement to kick in.

    Thanks for your input, I will be sure to follow up with my recruiter/HR when I start the onboarding process.

    #755106
    Anonymous
    Inactive

    PwC Tax gives a 10K bump in starting salary for a Masters in Tax so currently the tax associates start @ 59K and with a Masters in tax they start at 69K, but they do even your salary out quite quickly. This means that after year 1 you get great reviews and are up for a 10-15% raise, they will knock it down to 7-12% or so depending on the department. (This comes from me an inside man from NY, who should be studying, but instead is searching for what essays the BEC exam gave this week…im kiddin).

    #755107
    taxman2000
    Participant

    @2chancesLeft – I really hope that what you said is not the case! All my professors who said a Master's is a must would be really disappointed to hear that.

    But on the serious side, I would assume that people with MSTs and more so those with JD/LLMs would start at higher amounts and progress more quickly in terms of raises especially if they also got their CPA. After all an advanced degree in tax makes you more marketable from what I've heard…

    #755108
    Son
    Participant

    2chancesLeft is actually absolutely right. It's not just PwC, but other Big4s do the exact same thing. They start attorneys, for example, at a higher base salary and then just cut down their raises as compared to their peers who perform on the same level. The reasoning behind it is if person A has a BA in accounting and starts at 50K but after 5 years helps the company generate the same amount of revenue as person B who is an attorney and is just as knowledgeable and good at their job they should be paid the same.

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    #755109
    taxman2000
    Participant

    @Son – From that perspective, it does make sense…I guess the initial salary difference is worth it and hopefully the MST can be another bargaining point in addition to coming from the Big4 when you negotiate your salary in industry

    #755110
    taxsage
    Member

    I havent read everones responces, BUT I WOULD DROP OUT of the MST program if it is not required as part of your job offer. After a year of employment the Big 4 will pay for your MST, which could increase your compensation by an additional 10 to 20k over the next few years. Get your MST before you start and you can ask for the higher starting salary of 3k. Its an additional 3k for the MST in the Bay Area. Its an extra 10k for a law degree. Pretty sure you wont see an extra 10k for an MST anywhere in the country.

    Take a break from the MST and wait a year and have them pay for the rest.

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