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    taxehelp's Avatar
    taxehelp Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 4, 2007, 09:23 AM
    Repayment of Sign On Bonus
    I received a $5,000 sign on bonus. With taxes and everything taken out I received $2872.50. I haven't cashed the check and will be returning it within a month or so of my hire date, which is still in the same fiscal calendar year. My question is this do I have to pay back the $5,000 or can I just give back the check for $2,872.50? Since they can easily adjust my W-2 Gross for year end and they haven't actually paid the taxes on it yet since they are paid quarterly or annually?
    Any thoughts on this? I would greatly appreciate the help.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #2

    May 5, 2007, 08:52 PM
    If the bonus is returned, the employer can adjust the amount of taxes withheld in subsequent quarterly tax filings (Form 941) and make the adjustment on your 2007 W-2.

    But track it carefully. Mistakes do happen.
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