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-   -   Return of sign-in bonus (https://www.askmehelpdesk.com/showthread.php?t=192521)

  • Mar 8, 2008, 07:22 PM
    sonalsonal
    Return of sign-in bonus
    Hi,

    I had received a bonus of $10K when I joined my current job in 2007. I am leaving the company now and need to return the bonus as I did not stay for the required period of 2 years on order to earn the bonus. The bonus was given as part of my first paycheck with all the taxes deducted (state, federal, fica etc). Now they are asking me to write a check for certain amount.

    What is a normal way to return the bonus so that I do not end up paying company portion of the taxes, if any. Also, since it was given to me last year, it is part of my W2. I am not sure writing a check back to them would deduct it from my w2 this year. Please suggest me what is the norm? Since I paid taxes on it, I need to collect it back since I am returning it.

    Thanks for your help.

    Regards.
  • Apr 25, 2008, 01:42 PM
    AtlantaTaxExpert
    If you return the bonus, the amount of the bonus MUST be subtracted from your yearly salary on the 2007 W-2.

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