Quote:
Originally Posted by Learbubba
So I took the bonus at Envoy but ended up having to leave (family reasons) after 2 weeks. Here's the issue, I netted $11.5K of the $17.1 K bonus (taxes.) Well they want me to pay back $17.1K and say I'll get the rest back from the Govt next year. Anyone have any experience with this or know any way around paying back money I didn't get?
Many employers make you sign an agreement to pay back the gross amount, I don't know about Envoy. If you signed this then technically they can ask you to pay back gross even though it results in a tax loss to you. Assuming you didn't sign that:
See the links below for the correct way to handle this:
https://www.dickinsonlaw.com/blogs-a...f-compensation
Another source from Thomson Reuters Tax:
https://tax.thomsonreuters.com/blog/...nd-repayments/
Publication 15 with the IRS (wage repayments):
https://www.irs.gov/publications/p15...link1000202537
Unfortunately, most employers are too lazy/incompetent to correctly address this situation, and scare the employee into paying back the gross amount of the bonus, instead of the net amount, thereby screwing them out of social security and medicare taxes as a minimum.
If they do it correctly, the impact on the employee should net to zero.