Signing Bonuses in Veterinary Contracts: What Veterinarians Need to Know

roasalaw
Aug 25
2 min read

Updated: Aug 28

If you’re entering the veterinary profession, whether as a new graduate or an experienced specialist, you’ve likely noticed that nearly every employment contract today includes a signing bonus. But despite the appealing label, these bonuses are rarely “free money.”

From Rare to Routine

Ten years ago, signing bonuses in veterinary contracts were unusual. Today, they’re nearly universal, appearing in both corporate and privately owned practices. According to AVMA survey data, about two-thirds of new graduates reported receiving a signing bonus averaging $20,000, but in our experience at Roasa Law, that number underestimates both the frequency and si

ze of current offers.

More Than Just a ‘Signing’ Bonus

Despite the name, most “signing bonuses” aren’t paid when you sign your contract. Instead, they’re issued when you start working, making them closer to a starting bonus. More importantly, they almost always come with clawback provisions: if you don’t remain with the practice for a set period (often 1–3 years), you may be required to repay some or all of the money.

Types of Veterinary Bonuses

Signing/Starting Bonuses – Paid at or near your start date.
Relocation Bonuses – Intended to cover moving costs, but still taxable income.
Retention Bonuses – Paid after you’ve worked a set term; sometimes disguised as “prepaid” retention.
Early Bonuses – Offered to students in 3rd or 4th year before graduation—risky, since they can impact taxes and repayment obligations if plans change.

The Tax Trap

Since 2018, relocation and signing bonuses are taxable events. A $20,000 bonus may result in thousands owed in taxes, and if repayment is triggered later, you may be stuck repaying the gross amount (before taxes), leaving you out of pocket.