Is this really a loan?

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aaronf1980

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I was in the process of buying a home when my employer asked me what I needed to get my home. I told my employer that in order to purchase the home there is a $6500 dollar down payment needed. He said "We can take care of that we owe you money anyway" I received the $6500 and on the check it says commission. Now my employer is asking for the money back. There were no terms ever discussed or agreement signed as I was under the impression that it was money that they owed me. Do I have anything to be concerned with if I want to leave the company? The company is located in Texas and I live in NC
 
I was in the process of buying a home when my employer asked me what I needed to get my home. I told my employer that in order to purchase the home there is a $6500 dollar down payment needed. He said "We can take care of that we owe you money anyway" I received the $6500 and on the check it says commission. Now my employer is asking for the money back. There were no terms ever discussed or agreement signed as I was under the impression that it was money that they owed me. Do I have anything to be concerned with if I want to leave the company? The company is located in Texas and I live in NC

You have a great deal that should cause you to be concerned.

You received a check for $6500, notated as "commission".

Commission is considered income by the NC taxing authorities and the IRS bullies.

Of course, Medicare will want their cut, as will Social Security of that $6500 gift or loan.

Finally, even if the $6500 isn't a loan, the IRS would look at it as imputed income, and they'd demand their standard cut!

That alone could create two problems for you.

You throw in the loan versus gift confusion, you're likely to get terminated over this, if you don't repay the $6500.

Finally, employers have been known to sue a person in your precarious position just to add insult to injury.
 
As you describe it I don't believe you need to repay the money and you are free to leave the company without consequence, but as noted above you need to make sure your properly claim the money as income when tax time comes.
 
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