Sign-on bonus return

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mv100

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I received a sign-on bonus when I joined a Company with the stipulation that if I left before 1 year I was under obligation to repay the sign on bonus
The amount was 40,000 but after taxes I only received around 23000.
I have decided to leave the company after 4 months. This will still be within the same tax year.
My question is: Am I obligated to write a check for the complete 40000 (and how would i recuperate the taxes that were withheld?) or for the 23000 I actually received?
Thanks
 
Actually, the HR department will deduct some of your bonus from the last check and let you know what you owe them back (after taxes). You will not be paying the full amount if that is what you are worried about - just what is owed after taxes. Good Luck!
 
But is this based on the 40k or on the 23k that were actually received. as an example, lets say tehy deduct 5000 from the last paycheck. Would I have to pay back them 35000 (40k-5k) or 18k (23k-5k)?
 
What you will be refunding the company is going to be on the 23K you received from the company.
 
So put in other words....I will repay the company 23000, not 40000. I would have to have my w2 for the tax year adjusted by the company, correct?
 
I am hearing others disagree with this view and that I am suppossed to pay back the full 40k.
Any comments from people out there. There seems to be a controversy about this.
Thanks
 
Here is what I suggest if you think that you are not getting the correct information - contact your HR department and have them give you the answer so you will know for sure what you will have to pay the company back. This is privileged information and you will have the peace of mind you are seeking when it comes to the tax man.
 
I do not want to approach HR at this point. They are not of trust.
So I want to hear opinions of others. I do not want to be saddled with a 40k payment if what I need to pay back is the NET I received after deductions
Thx
 
Think about it this way - why would you have to pay 40K back to the company since the company has already deducted the taxes from you? You are going to be refunding the tax money to the company if you do that and that is illegal. No one receives bonuses tax free!!!! Best of luck to you!
 
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