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View Full Version : Returning signon bonus


paandaa
Jul 15, 2008, 12:07 PM
Hi,

My bonus was 5k with net pay of $2872.50, paid in 2007. I have to return $5k back to the company now since I am leaving before completing 1 year.

I do understand that federal tax can be refunded by following the steps listed in Publication 525. Is there a way to also reclaim the social security and medicare tax that was withheld?

Thanks!

AtlantaTaxExpert
Jul 16, 2008, 06:41 AM
Your employer has to amend their Form 941 to claim a refund on the taxes THEY paid. Once they get the refund, they should then refund your share of the Social Security and Medicare taxes.

paandaa
Jul 16, 2008, 05:21 PM
Thanks Atlanta Tax Expert! I appreciate it.

MukatA
Jul 16, 2008, 07:41 PM
Yes, the best option is that the employer adjusts your FICA taxes. If this is not done, then you will need to file Form 843, which is filed separately.