© 2022 Fairygodboss. All rights reserved.
Resigning before Bonus paid
I need some help. I accepted a position at year end that proved to be absolutely wrong. I have a guaranteed Bonus that will be paid out on February 15th. If I leave within 6 months of hire (May 2020), I have to pay the bonus back in full. I received another offer and am waiting to hear back/finish interviewing at 2 other companies. I am 100% resigning but would like to wait 2 weeks or so to do it. The job offer I have requires relocation so I am not sure what I want to do.
My question is - If I give my 2 weeks in early February (end date past February 15th) can I just decline the bonus so that I don't have to pay it back? I am worried about having to pay it back in full and losing out on the taxes. Or should I just resign now to ensure that I don't receive the bonus?
Has anyone ever been in this situation?
Debi Arnett
Sales and Marketing Pro.
18
02/03/20 at 2:19PM UTC
A lot of companies will just tell you to leave if you give them 2 weeks notice so you would then be without a job and a bonus. If they think you may change things, take materials that would jeopardize their business the minute they know your loyalty to them is compromised by a new potential position they will want you out the door unless they need something from you and they usually have another way of getting that same thing. 2 weeks is no time to wait. Stay 2 weeks to secure your bonus ( which I am assuming you already received in 2019, since you are talking payback of it) and then walk out if you get the new job and want to relocate. Don't think any company is loyal to you. That is a thing of the past.
Carrie StilesCreate the "WOW!" Factor For Your Client
470
01/31/20 at 5:44PM UTC
If the bonus is for past performance, I'd take it then follow my earlier advice. If it's to stay with the company, I'd still follow my advice from above.
Anonymous
01/30/20 at 11:58PM UTC
I would not meet your bonus with a sign-on. The bonus was to stay, and you didn't. It's not really a loss to you, and I'm taking a chance on you after you left a company after just a few months. Are you going to do the same to me? That's a headache. You can certainly mention it to the new company - but tread lightly.
If you give notice before the payout date they won't pay you the bonus (not in a bad way - they'll just skip the back and forth / paperwork for you).
Carrie StilesCreate the "WOW!" Factor For Your Client
470
01/28/20 at 10:23PM UTC
I would wait for the job offer. During salary negotiations, I would explain the bonus situation at your current/old company. See if they come back with a sign-on bonus or "relocation assistance" to cover your missed bonus.
Lucinda JacksonAuthor, Business Executive, Scientist.
80
01/28/20 at 6:36PM UTC
Yes! Don't quit till you have the new job, take your current bonus and save it in case you have to pay it back, and ask for a signing bonus at the new company!
Anonymous
01/28/20 at 3:44PM UTC
I was in a potentially similar situation. Yes: You can elect to refuse the bonus. In my case, I had the bonus put directly into an HSA: tax free. If I have to pay anything back (I did ultimately commit to the 2 years after which the bonus payback clause disappears) the payback amount is pro-rated against the actual portion of the 2 year commitment that I worked. Further, I will not be "out" any taxes that I paid. Make sense?
Anonymous
01/27/20 at 3:51PM UTC
Thanks all! Ideally they don't ask for it back but I cannot see that happening (they are cheap!).
Kimberly McIT Engineering Manager, DoD
613
01/27/20 at 1:48PM UTC
Use the bonus payback to ask for a signing bonus. Often employers will either pay it, or add it to your yearly salary - IF you ask. But save that bonus payout to pay your former employer back, if/when they ask for it!
Maggie BBusiness and Data Analysis Consultant
983
01/28/20 at 6:49PM UTC
A friend of mine did that and was able to double her bonus this way!
Susan SmoterBurning desire to make the working world better
1.46k
01/27/20 at 3:29PM UTC
Yes, this is exactly what you should do! I've always gotten a signing bonus in this situation.
Jennifer Hyduk
155
01/26/20 at 4:57PM UTC
Agreed. Just lay low, bank the money to save and hand back if needed. It won’t be a big deal. I’ve known some
Companies to ask for it back even if you passed the date but leave relativity close to the bonus deadline.
Mary E. WilkinsTeam Builder - Work Smarter
45
01/26/20 at 4:13PM UTC
I would wait for the results of the other new job offerings before resigning. You can make a decision about relocating in the meantime. Did you know about the potential for relocation when you applied? If yes, ask yourself why the job was attractive to you. That might assist in deciding.
Unless you absolutely hate your current job, keep it while you look and wait. That old cliche about counting chickens before they hatch holds true...
I believe that returning the money would reverse all taxes paid out and would be reflected in your W2 . Just put in your savings account and don’t spend it so it’s all there should you need to return it. If you are still there after the six month period, then it’s all yours. If you gave it back and plans changed, the money probably wouldn’t be repaid to you, and you would’ve tipped your hand about the possibility of leaving.
Good luck!
© 2022 Fairygodboss. All rights reserved.