mulekick
Level 1
01-06-2026
06:41 PM
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Client received sign on bonus received $5000, left before the required time and has to pay back, however, it spans two years. How does she get credit for the pay back?
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Level 15
01-06-2026
07:15 PM
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Pub 525, Page 37 Repayments
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TaxGuyBill
Level 15
01-06-2026
09:45 PM
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If she hasn't paid it back yet, she should pay back the gross amount MINUS the FICA taxes.
Many employers tend to ask for the entire gross amount back, but there is no reason to give the employer the FICA taxes back because the employer will/should-be amending their 941s to get FICA back.