I was working in Virginia State and Here is the whole Story:-
Last year, I went to my employer asking them to increase my salary and promotion, after I got a offer from another company to negotiate and see if they can match the offer new company is giving. They said they can increase my salary but need to check company policy. This happened in Sept (2014), Then in OCT (2014), I got a letter from my manager, that they would increase my salary but there would be 2 components, one is Retention bonus (of X $), and per month increase of Y$ per month. The offer stated that If I agree to the terms and conditions, I would be paid X$ (Tax would be deducted), but I would have to sign a bond of 1 year, and If I leave in between, I will have to pay full amount.
I mailed my manager back, stating I don't accept this offer and didn't sign any agreement.
They went ahead and deposited the amount (after tax deduction) in my bank account. In that process out of X$ some part (Lets say Z$) was deducted in TAX, and rest (X-Z)$ got deposited to my account. I immediately reached out to my manager asking why it was deposited since I never agreed to the offer and didn't sign any thing, and raised an internal company ticket for the same. I kept on following, but no response.
Finally I accepted offer from the same company which extended me the offer initially, and joined them on Dec 16th 2014. My previous company withheld my Dec Months First pay check, which is equal to the amount of money which I got as a part of Retention bonus (X-Z)$ in my bank account. As a part of my goodwill I didn't object it, when I should have, Since I worked for 2 weeks in Dec 2014, but decided to give it back , since I didn't earn it and I should help in returning back whatever is not mine.
Now the real issue started when they started asking me to pay the TAX part which (Z$). They said I can claim it from IRS. My TAX return is already filed. Below is the reply what I got, which I didn't quite understand :-
"........Ok so you received X$ in error, (X-Z)$ was deducted “before tax” on your December payroll, leaving Z$. Nothing will be done to the 2014 W2, it has already been netted down by the (X-Z)$. The Z$ should be repaid to the company. Since it will be paid in 2015 per IRS regulations there will be no tax impact to any W2. You should be able to take a credit on your 2015 tax return for the remaining repayment........"
Are they saying that I will get a new W2 form for 2015, and then I can claim it next year return?
Also I have below questions :-
1. Am I entitled to pay any part of money back to them, since I never signed any agreement with them regarding Retention Bonus.
2. Why are they asking me to pay the TAX money, and why I should claim it from IRS and pay them, Can't they do the same (Tell IRS, the money was deposited in error).
3. What legal actions can my previous employer take, and what are my options.
Will appreciate any help greatly.
Thanx
Last year, I went to my employer asking them to increase my salary and promotion, after I got a offer from another company to negotiate and see if they can match the offer new company is giving. They said they can increase my salary but need to check company policy. This happened in Sept (2014), Then in OCT (2014), I got a letter from my manager, that they would increase my salary but there would be 2 components, one is Retention bonus (of X $), and per month increase of Y$ per month. The offer stated that If I agree to the terms and conditions, I would be paid X$ (Tax would be deducted), but I would have to sign a bond of 1 year, and If I leave in between, I will have to pay full amount.
I mailed my manager back, stating I don't accept this offer and didn't sign any agreement.
They went ahead and deposited the amount (after tax deduction) in my bank account. In that process out of X$ some part (Lets say Z$) was deducted in TAX, and rest (X-Z)$ got deposited to my account. I immediately reached out to my manager asking why it was deposited since I never agreed to the offer and didn't sign any thing, and raised an internal company ticket for the same. I kept on following, but no response.
Finally I accepted offer from the same company which extended me the offer initially, and joined them on Dec 16th 2014. My previous company withheld my Dec Months First pay check, which is equal to the amount of money which I got as a part of Retention bonus (X-Z)$ in my bank account. As a part of my goodwill I didn't object it, when I should have, Since I worked for 2 weeks in Dec 2014, but decided to give it back , since I didn't earn it and I should help in returning back whatever is not mine.
Now the real issue started when they started asking me to pay the TAX part which (Z$). They said I can claim it from IRS. My TAX return is already filed. Below is the reply what I got, which I didn't quite understand :-
"........Ok so you received X$ in error, (X-Z)$ was deducted “before tax” on your December payroll, leaving Z$. Nothing will be done to the 2014 W2, it has already been netted down by the (X-Z)$. The Z$ should be repaid to the company. Since it will be paid in 2015 per IRS regulations there will be no tax impact to any W2. You should be able to take a credit on your 2015 tax return for the remaining repayment........"
Are they saying that I will get a new W2 form for 2015, and then I can claim it next year return?
Also I have below questions :-
1. Am I entitled to pay any part of money back to them, since I never signed any agreement with them regarding Retention Bonus.
2. Why are they asking me to pay the TAX money, and why I should claim it from IRS and pay them, Can't they do the same (Tell IRS, the money was deposited in error).
3. What legal actions can my previous employer take, and what are my options.
Will appreciate any help greatly.
Thanx
Resignation: Retention Bonus and Tax Refund
0 commentaires:
Enregistrer un commentaire