So I quit my job at a BB and have to pay back the signing bonus.
When I received the 10k sign on, I only ended up with $5,700 after tax.
They want me to pay the FULL 10k back to them. I filed my taxes and Im getting back a total of 4k.
How does this even make sense? If I pay them back the full 10k...I'm basically losing money.
I only received 5,700 + 4,000 in total taxes (which means I get back none of the tax from my paychecks normally?) + another 300 out of pocket.
Signing Bonus Agreement - Return Policy
While it is difficult to answer the particular dilemma of the OP, generally speaking many contract agreements stipulate that you have to back the full signing bonus if you leave within a certain period of time.
You might want to check the terms of the signing bonus, but I wouldn't be surprised if it says that you have to pay back the gross. After all, that is what the company paid to you, it's just that with taxes, you ended up with much less than $10k.
User @NorthSider" shared a tip on how to become whole on the difference between what you received originally and what you had to pay back to the bank:
Of course you have to pay back the gross amount. On next year's tax return, you can either take a credit for the taxes you paid on the bonus or a tax deduction for the total amount of the bonus repaid, whichever is greater. You're not going to be out the taxes, either way.
Do I Have to Repay My Signing Bonus?
Several users shared that it wasn't necessary to pay back the sign on bonus even if the bank wanted it back.
That said, given that you've already burned your bridge at the BB, I think a lot of reasonable people probably wouldn't repay the signing bonus. They're unlikely to come after you for it given the legal cost would far exceed the actual 10k. But know that you'll never work for that particular bank again.
Read More About Signing Bonuses on WSO
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