A person is paying back to us their hire bonus in monthly installments over the next 5 years. We set up a note receivable and are collecting interest. My assumption is this person should not get any W2 adjustments. Am I correct?

By the way, your previous answers to bonus questions were very helpful. Thanks

Thanks for the compliment! No pressure, but a tip would be nice! :-)

If he is paying you back under a note with interest being paid, the bonus has effectively been converted to a loan. The interest is income to your company.

In my opinion, no W-2 adjustment is needed.