I got a $5,000 sign on bonus & left the company under 1 year.

They held back my $3,033 yearly bonus to deduct it from what I owed them in sign on.

BUT they took taxes out of the $3033 bonus before deducting it from what I need to pay back. So they are subtracting $1817 from $5,000, saying I owe them $3,383.


Should they be subtracting the Net Bonus, if I'm not actually getting paid that amount? I don't understand why I'm being taxed on money I'm not paid?

What should I do? It seems like it would be better if I kept these transaction completekly separate.
Can I have them capture the -$5,000 in my W2s? If not, what documentation do I need at tax time to get this captured.

Thanks in advance!

The bonus payback should be reflected on your end-of-year W-2.

It should also be reflected on your final check stub.