signing bonus payback

[rjew]

What is the name of your state? CA

I recently left my previous employer before one year (worked there for 8 months). HR checked me out and I got my last paycheck. Just recently, they called me up asking for their $7500 signing bonus back in full since I didn't work there one year. I did sign a form on my first day of employment.

So do I really need to pay back the signing bonus? If so, do I really need to pay back the whole amount of $7500? They took out state and federal taxes, social security, medicare, and CA SDI, so I really didn't get the full $7500. However, they want the full $7500 back? Isn't there something illegal about that with me paying tax on $7500 which I'm giving back? I can't get back the social security, medicare, and CA SDI.

 

[Beth3]

So the hiring agreement stated you were required to repay the signing bonus if you left their employment in less than a year? Yes, you have to pay it back and yes you have to pay back the full amount. Make sure the employer sends you a W-2 that reflects your wages less the $7,500 you repaid them and any overwithholding to the State and federal gov'ts will be refunded when you file your tax return.

 

[rjew]

Thanks for the reply. Yes the letter stated I had to pay it back in full. But I thought because it is late this year, they will send me a W-2 that has the $7500 included. If I don't pay them back until next year, then the W-2 will be wrong when I pay them back next year. I will not get another W-2 from them next year since I don't work for them any more. Would I get back my medicare and social security and CA SDI back when I do my taxes? I know I might get back the federal and state tax but I don't know how I would get my other stuff back?

 

[JETX]

They can file an 'amended' W-2 to reflect your repayment of the $7500.00.

As for the deductions you are trying to recover, those are moot issues. The employer was required to deduct them and does not get them returned (since they were 'credited' to your tax accounts at the agencies). If your reported income is adjusted to reflect the $7500 income deduction, the funds will be reflected, in whole or part, on your refunds.