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    Madisonwi's Avatar
    Madisonwi Posts: 3, Reputation: 1
    New Member
     
    #1

    Apr 24, 2007, 01:41 PM
    Are you required to repay a bonus?
    I ask this questions since I've seen similar questions in this forum.

    My wife received a sign-on bonus directly out of college, but left the job within 6 months (due to an inhospitable work environment.) She has several thousand left to repay as she was required to stay at the job for three years.

    The post in these forums that caught my eye was the posting about the necessity of repayment whereby the employer should be repaying the relocation costs. In other words, she left the job, was not paid for relocation, and now is required to pay this amount.

    Is the no relocation = no repayment statement true?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #2

    Apr 24, 2007, 02:04 PM
    It could be. That is a matter of negotiation between her and her ex-employer. Given the inhospitable work environment, I would use that as leverage to keep the entire sign-on bonus in lieu of a court action on her part.
    ebaines's Avatar
    ebaines Posts: 12,131, Reputation: 1307
    Expert
     
    #3

    Apr 25, 2007, 06:09 AM
    I don't undrerstand what the relocation issue is here? I gather that your wife received a simple signing bonus, not a relocation allowance, correct? So why are you asking about relocation benefits?
    ScottGem's Avatar
    ScottGem Posts: 64,966, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #4

    Apr 25, 2007, 06:46 AM
    Generally a signup bonus is paid upon condition of staying employed for a specified term. Usually a job that involves such a bonus requires the employee to enter into a contract. So all of this should be spelled out in the contract.

    Your wife may have found the environment unhospitable. But the employer may disagree. The only way she MIGHT get out of repaying the bonus is by going to court and trying to show the employer breached the contract.
    Madisonwi's Avatar
    Madisonwi Posts: 3, Reputation: 1
    New Member
     
    #5

    Apr 25, 2007, 08:32 AM
    These answers have been helpful and I understand better the circumstances surrounding her leaving of the employer.

    Thank you for you help AnswerMen!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
     
    #6

    Apr 25, 2007, 09:00 AM
    Typically, the cost of the relocation is covered by the signup bonus. You COULD make a further argument that her relocation costs should be deducted from any repayment of the signup bonus.

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