3 ms·

Being required to pay back sign on bonuses, etc if you leave within 12 months is fairly typical, though I think often amortized or some such based on time. Now

by olliej 4y ago

Being required to pay back sign on bonuses, etc if you leave within 12 months is fairly typical, though I think often amortized or some such based on time. Now some of this seems excessive (one account in the article says 2 years, which is BS), but in this particular case it seems she was employed remotely and then they changed the terms of employment to require in office work. In that case I would argue the relocation costs are entirely the fault of the business, not the employee and morally they have no right to charge her. Of course that has no meaning in the law, especially in anti-worker countries like the US.

pyro2927 4y ago
When I got hired to work at Wizards of the Coast (no longer there), the contract I signed said I would have to pay back my signing bonus if I left within one year, and 50% of my relocation package if I left before 2 years. The one thing that often gets difficult with these things is that you get charged tax on the signing bonus (as additional income), but when you are required to pay it back you're expected to pay the full amount pre-tax.
- junar 4y ago
  You can eventually get the taxes back, though it might take a while. Your former employer should take care of the FICA part after you repay them. For federal income tax, you'll claim a tax credit when you file your return according to "Repayment over $3,000" under IRS Pub 525. State income tax may have a similar process, though it can vary depending on the state. https://www.irs.gov/publications/p525#en_US_2022_publink1000229603 https://www.irs.gov/publications/p525#en_US_2022_publink1000...
  - pyro2927 4y ago
    Learned something new, thanks! In my specific case they sent over an amount to repay that was higher than what I calculated from my original contract, I asked for an itemized breakdown (the original communication just had a single flat number), and I never heard from them again. It was probably more expensive for their lawyers to double check the numbers than the amount they would have received from me.

by olliej 4y ago

pyro2927 4y ago

When I got hired to work at Wizards of the Coast (no longer there), the contract I signed said I would have to pay back my signing bonus if I left within one year, and 50% of my relocation package if I left before 2 years. The one thing that often gets difficult with these things is that you get charged tax on the signing bonus (as additional income), but when you are required to pay it back you're expected to pay the full amount pre-tax.

junar 4y ago
You can eventually get the taxes back, though it might take a while. Your former employer should take care of the FICA part after you repay them. For federal income tax, you'll claim a tax credit when you file your return according to "Repayment over $3,000" under IRS Pub 525. State income tax may have a similar process, though it can vary depending on the state. https://www.irs.gov/publications/p525#en_US_2022_publink1000229603 https://www.irs.gov/publications/p525#en_US_2022_publink1000...
- pyro2927 4y ago
  Learned something new, thanks! In my specific case they sent over an amount to repay that was higher than what I calculated from my original contract, I asked for an itemized breakdown (the original communication just had a single flat number), and I never heard from them again. It was probably more expensive for their lawyers to double check the numbers than the amount they would have received from me.