Can a sales quota be changed after the end of the fiscal year?

[Curious2008]

What is the name of your state (only U.S. law)? Virginia.

I work for a multi-national firm as a sales rep. During fiscal year '08, I was given a sales quota of $1 million. I was given a territory that was shared with another sales rep. We were supposed to get 50% credit for each deal closed. Our compensation application was not able to split the commission that way and both of us ended up with 100% commission for the deals. The company realized the error two months after the FY close. Their solution was to retroactively change our sales quota for FY'08 from $1 million to $2 million. My W2 refelcted the higher wages and pushed me into a much higher tax bracket. I also lost most of the college financial aid I had from the previous year. They are now wanting me to write them a check for the over payment by 12/15/08. I found this out yesterday, 11/24/08.

Questioins;
1.) Can they retroactively change my sales quota like that?
2.) Do I have any reocurse with them since I incurred a higher tax bill and lost college financial aid as a result?
3.) Should they be able and willing to allow me to work off the amount based on the upcoming sales?
4.) Do I have any chance of not writing a big check to them now?

Thank you.
Curious 2008

[cyjeff]

You owe them the money.

You knew you were being overpaid.

You are now complaining about having to pay back the money AND the fact that the extra commission put you in a higher tax bracket?

When you pay back the money, ask about having your tax withheld adjusted.

[LeeHarveyBlotto]

1.) Can they retroactively change my sales quota like that?

Can they correct their error? Of course.

2.) Do I have any reocurse with them since I incurred a higher tax bill and lost college financial aid as a result?

Had you done the right thing the first time you received a check with double commission, it wouldn't have been an issue, would it?

3.) Should they be able and willing to allow me to work off the amount based on the upcoming sales?

Up to them, I surely wouldn't. If it were my shop, you'd be on the street.

4.) Do I have any chance of not writing a big check to them now?

You can do it now, or later after they successfully sue you.

[ecmst12]

Your tax bracket will be corrected when you file your taxes for 2008. Since you are paying back the overpayment in the same tax year, you should only have to pay back the NET amount, not the gross.

And your quota wasn't actually changed. They played with the numbers to get the system to pay you correctly. You got credit for twice as much revenue as you actually earned. Since they couldn't change what you got credit for selling, they had to change the quota, but the numbers should work out the same either way.