# Ernst & Young Bonus Timing Triggers Social Security Rule

> 63-year-old Ernst & Young employees get $100m bonuses that Social Security counts in the year earned, not received.
- Title: Ernst & Young Bonus Timing Triggers Social Security Rule
- Summary: 63-year-old Ernst & Young employees get $100m bonuses that Social Security counts in the year earned, not received. Social Security counts Ernst & Young…
- Keywords: ernst young, social security, bonus timing, earnings test, special payment rule, human skills, retirement, federal benefits, Ernst, Young, Bonus, Timing
- Source: 24/7 Wall St. — https://247wallst.com/personal-finance/social-security/2026/09/21/ernst-young-is-handing-out-100-million-in-human-skills-bonuses-at-63-social-security-counts-the-bonus-in-the-year-he-earned-it-not-the-year-it-arrives
- Author: Gerelyn Terzo
- Published: 2026-09-22T00:02:12+00:00
- Read time: 1 min
- Topics: ernst young, social security, bonus timing, earnings test, special payment rule, human skills, retirement, federal benefits
## Bonus Rule Shift
Ernst & Young will pay $100 million in human skills bonuses to employees.

> Ernst & Young said it will award $100 million in bonuses to employees who demonstrate human skills
## Social Security Timing
Social Security counts bonuses in the year earned, not received.

> At 63, Social Security counts the bonus in the year he earned it, not the year it arrives
## Earnings Test Rule
Earning over $24,480 triggers Social Security to reduce benefits.

> In 2026 you can earn $24,480 from work before Social Security holds back $1 in benefits for every $2 above the limit
## Special Payment Rule
Bonuses count as work done, not received, for Social Security purposes.

> Compensation you receive after you retire, for work you performed while still on the job, sits outside the annual earnings limit
## Bonus Timing Example
Bonus lands in next year, counts as work done in current year.

> Picture a hypothetical Ernst & Young employee who turns 63 this fall, qualifies for a human skills bonus on this year’s performance, and retires December 31
## Tax Impact
Bonus income affects Social Security taxability in the year received.

> The bonus counts as ordinary income in the year you receive it, and that can pull more of your Social Security into taxable territory
## Claiming Strategy
Take bonus before Social Security starts to avoid tax penalties.

> If the timing is flexible, take the bonus in a year before benefits start
## Permanent Impact
Early claiming reduces Social Security by 25% for life.

> Claiming at 63 against a FRA of 67 permanently reduces the benefit by 25%
## Key takeaway

Social Security counts Ernst & Young bonuses in the year earned, not received, avoiding early retirement penalties.