TennisandSales profile picture
TennisandSales profile picture

TennisandSales

Head Of Sales

Politicker
Acclaimed Answer
Executive
+9

Paying back a sign on bonus…

so i got a sign on bonus when i took this job earlier this year. 

the contract says i have to pay it back on a prorated basis is i leave within the first year. 

well, that might happen and I'll have the new company pay for it of course.

the question is a tax question i guess, so I'll have to lay back the PRE tax number correct? but I'll have to pay that peet tax number, with POST TAX money? 

anyone ever done this? any secret tax plan i need to be aware of here? 
😜 contracts
🛫 Sales Expenses
🌝 Taxes
15

36 comments

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CuriousFox
WR Officer
11
🦊
No but side note - thought you liked your current company? You ok boo?
TennisandSales
Politicker
8
Head Of Sales
I do, which is crazy! Ive never been in a position like this beofre. its a long story....hard to tell with out outing myself but maybe ill have to make a post about it haha!
braintank
Politicker
6
Enterprise Account Executive
Spill the 🫖
CuriousFox
WR Officer
5
🦊
👀🍿
Sunbunny31
Politicker
3
Sr Sales Executive 🐰
There's no "maybe" here - you absolutely have to make a post.
jefe
Arsonist
4
🍁
We definitely need that post!
ThatNewAE
Big Shot
2
Account Executive - Mid enterprise
...
TennisandSales
Politicker
1
Head Of Sales
Haha! I made the post peep my profile
LordOfWar
Tycoon
5
Blow it up
I looked this up and it seems if it is the same year you repay the net amount, if different year then you repay the whole thing which seems strange to me. I would NOT want to pay back anything that went to taxes and good luck getting anything back from the employer after settling.

https://www.cerebraltaxadvisors.com/blog/signing-bonuses-and-their-tax-implications/

Personally, I would just bring it up with the new company's HR and tell them they need to sort it out. Make sure to get in writing that you will be compensated within 30 days for any amounts you are out of pocket, including taxes, fees, and charges.
TennisandSales
Politicker
2
Head Of Sales
oooo i like the idea of getting it in writing to cover taxes and fees and charges! nice call.
LordOfWar
Tycoon
1
Blow it up
Gotta protect yourself
activity
Politicker
1
VP, Business Development
Great info for anyone in this position.
Gasty
Notable Contributor
4
War Room Community Manager
@SADNES5 : I’m sure you’d have something to add here
SADNES5
Politicker
1
down voters are marketing spies
@TennisandSalesno special formula. Income is income sadly. The new company you should negotiate the after tax bonus plus pay back scheme.

How far are you away from the 1yr? Might be cost benefit to wait it out...
TennisandSales
Politicker
1
Head Of Sales
For sure could be worth the wait. I have a meeting on Friday and i think I’ll be able to get a lot of info to help make the call.
antiASKHOLE
Tycoon
3
Bravado's Resident Asshole
I'm curious about this as well. Sticky situation. Also, I'm with Foxy, You seemed to be liking it there, why the change?
Sunbunny31
Politicker
3
Sr Sales Executive 🐰
Probably best asked of a tax professional. Sometimes you can ask a simple question for little $$, if any. Do you know any CPAs you can hit up for 15 minutes or so?
CuriousFox
WR Officer
3
🦊
Yeah I am definitely not a financial guru 😆
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
I know for sure I'm not.
TennisandSales
Politicker
1
Head Of Sales
yeahhh good call ill have to make a few calls haha
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
Yeah, I mean don't expect advice for free, even from a friend, but certainly get their take on it. How close are you to the year, though?
TennisandSales
Politicker
1
Head Of Sales
Very true. I am 3 months from the 1 year mark
Sunbunny31
Politicker
2
Sr Sales Executive 🐰
And when do you expect to jump ship?
TennisandSales
Politicker
0
Head Of Sales
thats the big question
Pachacuti
Politicker
3
They call me Daddy, Sales Daddy
if you're close to the end of the year, they probably won't ask for anything back. I wouldn't worry too much about this unless you strongly think they'll ask for the money back.
TennisandSales
Politicker
0
Head Of Sales
yeahh idk. if i do owe anything it will be less than $2k so i wouldnt be surprised if they DO ask for it back, i also wouldnt be surprised if they dont haah
ChumpChange
Politicker
2
Channel Manager
What happened @TennisandSales I thought things were peachy. But then again... when opportunity knocks.
TennisandSales
Politicker
1
Head Of Sales
ha! i love that ppl remembered i like my job! ill have to make an update i guess! and your right, its all about opportunity knocking.
Sunbunny31
Politicker
1
Sr Sales Executive 🐰
Well, congratulations on having a great offer come your way.
Kosta_Konfucius
Politicker
2
Sales Rep
Highly recommend searching LinkedIn for someone who left within a year and ask them.
TennisandSales
Politicker
1
Head Of Sales
oh snap another great call!
DungeonsNDemos
Big Shot
2
Rolling 20's all day
If I had to guess it would be paying back the full bonus amount, but I'd definitely go ask your tax guy to be sure.
Justatitle
Big Shot
1
Account Executive
People out here getting laid off and @TennisandSalesis fending off rich people problems… I salute you.
TennisandSales
Politicker
1
Head Of Sales
hahah!! not a day goes by where I dont realize how privileged I am to be having these sort of "problems" 😂
Justatitle
Big Shot
0
Account Executive
Im so glad you took this the way you have as I did not mean it as an insult or anything of the sort. I am incredibly thankful for my job and what it affords me as well. Best of luck in your decision making process on this though.
TheQueenofDiamonds
Politicker
1
Account Executive
You pay tax on money you reserved, prorated. If the new company is paying for this, they will show it on the report (same with your original company )

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