Employer loan payback time

[Erste]

Florida.-

I received a "loan" type of bonus to put as down payment for my house three years ago. It was meant to be part of a bonus that legaly could not be more than the percentage allowed for the law to put in my roth-ira.
The check was larger than the "bonus" diffence and I was supposed to get rid of that debt by subsequent year's bonuses.
But time has passed by and due to the company's situation, there hasn't been any more bonuses (at least to my person) so now my boss (business owner) is demanding the full payment on this.
Is it possible he can carry out this loan over the years without having me pay for the taxes or interest ?
Can this be legally enforced in case I'm terminated or leave the company?
Paying the money back would be hard for me at this time, but I think the verbal agreement back then (with no witnesses) is not a strong argument now that I'm on the weak side of the table.

I would appretiate any guidance on how to handle this matter.

 

[blameshifting]

What does your loan agreement say?

The law doesn't limit the size of your bonus.

 

[Beth3]

You're right, blame. The law doesn't limit the amount of bonus an employer can provide. What I expect the poster is referring to though is the annual dollar limit an individual can contribute to their IRA on a tax-deferred basis.

Erste, what appears to have happened is that your employer loaned you money in the form of an advance on a discretionary bonus. That is, he loaned you money "on the come" in anticipation of a bonus he isn't obligated to make. The bonus didn't come to pass so now you need to repay the loan.

Whether you HAVE to depends upon the terms you agreed to at the time and any documentation that exists. You are correct that since there was only a verbal agreement and nothing in writing documenting the terms of the loan, you are in a weak position. But then so is the company owner.

You'll need to see an attorney if you want expert advice. Be advised though that refusing to repay is obviously going to put you on the bad side of the company owner and your days in your current job would undoubtedly be numbered.