TennisandSales

Head Of Sales

Politicker

Acclaimed Answer

Executive

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

36 comments

Sort by:

CuriousFox

WR Officer

🦊

No but side note - thought you liked your current company? You ok boo?

TennisandSales

Politicker

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

Enterprise Account Executive

Spill the 🫖

CuriousFox

WR Officer

🦊

👀🍿

Sunbunny31

Arsonist

Sr Sales Executive 🐰

There's no "maybe" here - you absolutely have to make a post.

jefe

Arsonist

🍁

We definitely need that post!

ThatNewAE

Big Shot

Account Executive - Mid enterprise

...

TennisandSales

Politicker

Head Of Sales

Haha! I made the post peep my profile

LordOfWar

Tycoon

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

Head Of Sales

oooo i like the idea of getting it in writing to cover taxes and fees and charges! nice call.

LordOfWar

Tycoon

Blow it up

Gotta protect yourself

activity

Politicker

VP, Business Development

Great info for anyone in this position.

Gasty

Notable Contributor

War Room Community Manager

@SADNES5 : I’m sure you’d have something to add here

SADNES5

Politicker

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

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.

boredAnti

Tycoon

That One Guy

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

Arsonist

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

🦊

Yeah I am definitely not a financial guru 😆

Sunbunny31

Arsonist

Sr Sales Executive 🐰

I know for sure I'm not.

TennisandSales

Politicker

Head Of Sales

yeahhh good call ill have to make a few calls haha

Sunbunny31

Arsonist

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

Head Of Sales

Very true. I am 3 months from the 1 year mark

Sunbunny31

Arsonist

Sr Sales Executive 🐰

And when do you expect to jump ship?

TennisandSales

Politicker

Head Of Sales

thats the big question

Pachacuti

Politicker

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

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

Channel Manager

What happened @TennisandSales I thought things were peachy. But then again... when opportunity knocks.

TennisandSales

Politicker

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

Arsonist

Sr Sales Executive 🐰

Well, congratulations on having a great offer come your way.

Kosta_Konfucius

Politicker

ERP Sales

Highly recommend searching LinkedIn for someone who left within a year and ask them.

TennisandSales

Politicker

Head Of Sales

oh snap another great call!

DungeonsNDemos

Big Shot

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

Account Executive

People out here getting laid off and @TennisandSalesis fending off rich people problems… I salute you.

TennisandSales

Politicker

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

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

Big Shot

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 )