Related Posts
Bowl Leader
Do you use a roth or traditional 401(k)?
Chief
More Posts
Can we get work permit to Canada without job ?
Visual Storyteller
How do you keep Santa happy?
Additional Posts in Consulting
Rising Star
McKinsey & Company Has any industry experienced candidates pivot to MBB Engagement Manager before? My roommate works at FAANG as Senior Analyst (Ops, 6+ YOE) and was approached by McKinsey & Company recruiter for an EM role. He hasn’t done consulting before. Would this be too much of a risk? His goal is to pivot to PE S&O eventually.
Deloitte S&O vs Monitor ?
New to Fishbowl?
Download the Fishbowl app to
unlock all discussions on Fishbowl.
unlock all discussions on Fishbowl.
Makes perfect sense. Your employer gave you $5k, they want $5k back. It’s your problem to settle up with Uncle Sam at the end of the year to get the taxes back
This actually makes a lot of sense haha thanks
It’s difficult for companies to refund taxes that were withheld as they’ve already been paid to the jurisdictions, fed/state/local and they don’t have access to it anymore. It’s too much of a hassle for them to request a refund on your behalf (especially when this happens multiple times through the year to multiple employees). It’s much easier to make you pay it back. However the payroll department should record that you’ve paid back the gross amount and it will affect your W2 and tax return. Depending on your annual tax liability, it’ll likely result in a refund.
Rising Star
You pay what you receive. Why would a company subsidized your tax liability? You'll get it back when you file.
Chief
Take it up with the IRS. The company paid you full bonus. You paid the taxes. The company didn’t tax you.
When something like this occurs, the company should give you an amended W2.
You are responsible for filing an amended tax return and showing that you paid it back in full, and adjust your taxes accordingly.
I just started a new job and my sign on bonus was technically structured as a promissory note that is forgiven ratably over every pay cycle for the next two years. I got the money tax free up front and I will pay taxes on 1/48th of the amount every paycheck as the forgiven amount runs through as imputed income.
I assume it was structured this way to avoid the complications the OP raised. I had never heard of this approach before but it seems pretty smart.