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Sign on bonus repayment
I have to repay my sign on bonus because I resign from my job before I had completed 1 year of employment. My sign on bonus was $5,000 gross and $3,217.5 net after tax (which I received). My company asks me to pay back $4,617.5. I don't understand why I should reimburse more than the net I have received - i.e. $1,400 more than the net amount I received. Could you please tell me why. Thank you very much.
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I am assuming you had a contract? Please check it carefully. Per the contract, if you leave earlier than 1 year, they may be entitled to any workman's comp, FICA, Medicare, Unemployment insur, Health insur,. Any payments they completely shouldered the burden for, on your behalf. This excludes any taxes that were paid to the government "by you" in your check.
There is an employer portion to all the above that I have mentioned, that you do not see in your check. They may be entitled to the refund from you. This may be a lesson in reading and reviewing employment contracts and understanding what you are signing before committing yourself in the future. It is always wise to have a lawyer review any contracts you may be asked to sign. |
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