Originally Posted by
flyboyIIII
Not sure if I read the DEC bonus repayment agreement correctly and need help. "Prior to Pilot's first day of employment with Envoy, Envoy will make a lump sum payment to Pilot of ...., LESS APPLICABLE TAX and WITHHOLDINGS." "...if Pilot resigns or is terminated for any reason at any point within 24 months..., pilot agrees to repay some or all of the PRE-TAX amount of any DEC Bonus payment paid to Pilot."
If they awarded me $100k sign on bonus and l received $70k after tax, I still have to pay the company back full $100k even though i never receive the full amount?
That’s the part that scares me. Rumor is that Envoy “usually” comes after the after tax net amount, but it’s right there in writing they can demand the full pre-tax amount back. Say one of us fails training or turns the wrong way after taking off from ORD and gets fired in the first year, they can instantly demand all their money back even if you didn’t intend to leave. The good thing is it’s pro-rated after a year.
My internet research shows that if you repay a bonus in the same calendar year, the company can, if they choose, recoup the taxes themselves through filing paperwork. If you pay it back in a different calendar year, they expect the full amount back and you need to try to get your taxes back on your tax return. Standard bonus withholding is 22% federal, 1.45% Medicare tax, 6.2% Social Security tax, plus state tax; you can file amended tax returns but Medicare and Social Security would be harder, or maybe impossible, to recover.
My gut says don’t sign it, it’s a trap. It’s tempting though. Good luck with your decision. See you in Orientation on Thursday.