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    questions1 Posts: 2, Reputation: 1
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    #1

    Apr 1, 2007, 01:52 PM
    Repaying Sign-on Bonus
    I took a $16,000 sign-on bonus at a company for a 2 year employment commitment, but I only actually received approximately $12,000. I am leaving the company with 15 months left on my contract.

    The company is asking me to pay back a pro-rated amount based on the original sign-on bonus.

    My question is: I paid taxes on the original sign-on but they are asking me to pay back the pro-rated $16,000 amount (non-taxed). Shouldn't the pro-rated pay back be based on the actual amount I received ($12,000) not the $16,000. Is this legal?

    Thanks
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Apr 5, 2007, 12:04 PM
    It IS legal.

    Have them adjust your 2007 salary to factor in the payback.
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