- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Repaying a signing bonus
Posted on 12/7/18 at 2:08 pm to Mingo Was His NameO
Posted on 12/7/18 at 2:08 pm to Mingo Was His NameO
quote:
You don't have to pay them back their portion of the tax. They need to get their refund back from the government on that piece. You'll have to deduct that income from your own taxes at the end of the year which will lower your taxable income and tax burden.
Not necessarily.
This post was edited on 12/7/18 at 2:10 pm
2
Posted on 12/7/18 at 2:15 pm to Jorts R Us
Yeah, I would leave it to HR and say nothing. NOTHING. When I left a job to enter Business School, the dumb HR folks paid me for two months after I had left. When they asked for it back, I asked about taxes and she just said forget it. So I got paid for nothing and was happy to have some cash to start 18 months of no income.
Posted on 12/7/18 at 2:16 pm to Jorts R Us
Im just planning on cutting them a check becuase I have the money at hand, but I just have no idea how this works in regards to tax purposes.
Posted on 12/7/18 at 2:17 pm to TigersHuskers
There is a lot of wrong information here.
If they paid you $5000 with the intent of you staying, then you owe them $5000 unless it is stipulated in the contract to be prorated.
Taxes do not count and cannot be factored in. The government taking money out is a different issue and that is between you and Uncle Sam. In the employers eyes, they paid $5000 to you. In the IRS eyes, you had $5000 of income and it was taxed at the proper percentage.
The IRS does not care if you pay them back, however if you do the company will be taxed on that as income to them.
You should have a signed contract with this information very clearly written.
If they paid you $5000 with the intent of you staying, then you owe them $5000 unless it is stipulated in the contract to be prorated.
Taxes do not count and cannot be factored in. The government taking money out is a different issue and that is between you and Uncle Sam. In the employers eyes, they paid $5000 to you. In the IRS eyes, you had $5000 of income and it was taxed at the proper percentage.
The IRS does not care if you pay them back, however if you do the company will be taxed on that as income to them.
You should have a signed contract with this information very clearly written.
Posted on 12/7/18 at 2:18 pm to Dirtysouthdeacon
quote:
Yeah, I would leave it to HR and say nothing. NOTHING. When I left a job to enter Business School, the dumb HR folks paid me for two months after I had left. When they asked for it back, I asked about taxes and she just said forget it. So I got paid for nothing and was happy to have some cash to start 18 months of no income.
Thats not how the railroad works. This is an industry that lives to frick over its employees as hard and as rough as possible. Theyll piss away millions of dollars on stupid shite but they will go all out in collecting a measly $5000 check that I imagine is nothing more than a tax write off to them in the first place.
Posted on 12/7/18 at 2:19 pm to TigersHuskers
quote:
Im just planning on cutting them a check becuase I have the money at hand, but I just have no idea how this works in regards to tax purposes.
Again, i’d talk to the company first. However, if you end up cutting a check for the gross the instructions on how to handle repayments are included on IRS Publication 525. I’ve given a brief overview in my last post. I don’t know all the details so I can’t give you any tax advice but those are the avenues I would pursue to ensure you don’t overpay tax.
Posted on 12/7/18 at 2:20 pm to TigersHuskers
quote:
I just have no idea how this works in regards to tax purposes.
It works out clearly, it will list the $5000 as part of your income for the year.
Repaying it does not reduce your income you were given in the year. In breach of contract you are paying a debt and not reducing your income.
Posted on 12/7/18 at 2:22 pm to DarthRebel
quote:
It works out clearly, it will list the $5000 as part of your income for the year. Repaying it does not reduce your income you were given in the year. In breach of contract you are paying a debt and not reducing your income.
Incorrect.
Posted on 12/7/18 at 2:29 pm to Jorts R Us
quote:
Incorrect
OK, you sound more in the know than me. Going off the contracts I have seen in the past.
Posted on 12/7/18 at 2:30 pm to Jorts R Us
quote:
Not necessarily.
Not neccisarily as in the contract could make him lay the gross amount, or not neccissailafy as in he could be liable for the employers side of FICA.
The second isn't true.
Posted on 12/7/18 at 2:32 pm to TigersHuskers
Is this you?
Posted on 12/7/18 at 2:32 pm to TigersHuskers
Why are you breaching your contract to move?
Posted on 12/7/18 at 2:32 pm to DarthRebel
quote:
OK, you sound more in the know than me. Going off the contracts I have seen in the past.
No worries. Wasn’t trying to be a dick. Can’t speak to the facts and circumstances in the situations you’ve been exposed to but repayment of compensation is something that the IRS addresses in the aforementioned Pub and the result is equitable in most cases.
Posted on 12/7/18 at 2:33 pm to Mingo Was His NameO
Are you from Shreveport
Posted on 12/7/18 at 2:34 pm to Beefherinthequeefer
quote:
Are you from Shreveport
No, why?
Posted on 12/7/18 at 2:35 pm to Mingo Was His NameO
Just asking carry on...
Posted on 12/7/18 at 2:36 pm to Dirtysouthdeacon
quote:
Yeah, I would leave it to HR and say nothing. NOTHING. When I left a job to enter Business School, the dumb HR folks paid me for two months after I had left. When they asked for it back, I asked about taxes and she just said forget it. So I got paid for nothing and was happy to have some cash to start 18 months of no income.
better than my story. I got paid twice by a company, they deducted the gross amount to pay themselves back.
They eventually fixed it, but frick me.
Posted on 12/7/18 at 2:36 pm to TigersHuskers
Are you staying with the same company that is making you repay a bonus they gave you? frick that shite
Posted on 12/7/18 at 2:37 pm to Mingo Was His NameO
quote:
Not neccisarily as in the contract could make him lay the gross amount, or not neccissailafy as in he could be liable for the employers side of FICA. The second isn't true.
You are correct that he would not be liable for that piece. What you stated is what should happen, but it’s not always a perfect world. The IRS has given guidance on what to do if your employer doesn’t refund the payroll taxes.
Posted on 12/7/18 at 2:38 pm to soccerfüt
quote:
Is this you?
thats prolly a pre-85 guy. Those guys who are still there make almost 200K a year
Page 2 of 3
Popular
Back to top
Follow TigerDroppings for LSU Football News