Due to unforeseen complications on my end, such as finding amicable / affordable / available residence in the new state, in tandem with selling / renting my current property (a prerequisite to obtaining a new loan), the employer’s predefined relocation timeframe has expired. Note that I have been working remotely for this employer, since accepting the offer.

To clarify further, I am financially unable to sustain two properties, in two different states – even if merely renting. As a result, I clarified this fact, as well as my vested interest to remain on the team, and asked for more time. In other words, I have not voluntarily quit. My employer decided to terminate employment, considering the relocation-delinquency a “voluntary separation”, and is now asking for the signing bonus to be returned, regardless.

My questions are:

PART 1: Does my financial inability to execute the relocation, in the employer’s timeline, constitute as an obligation to return the bonus? Again, I have not abandoned the opportunity … only requesting more time.

PART 2: If I must return the funds, am I obligated to return even the taxable portion which I never received in the first place … or the NET portion and let the employer seek a tax credit from IRS? I’ve read HORRIBLE reviews online where employees were asked to pay the GROSS amount and that they would get a refund at tax return time but were ultimately denied any consideration by the IRS.

Note that I did see your post at https://www.evilhrlady.org/2007/10/old-boss-switcharoo.html

Excerpt: “And make sure payroll calculates your repayment. Sign on bonuses have taxes withheld at a supplementary rate, which means a good chunk is taken out. You only have to repay the amount you actually received. So, your sign on bonus was $10,000. Your net check was $6500. You repay the $6500. Payroll will adjust your W2 to take care of all the tax implications.”

Signed –
No-go Relo

Thanks.