Delawaredave5
Full time employment: Posting here.
- Joined
- Dec 22, 2004
- Messages
- 699
Helping a friend - his employer had a tuition reimbursement program - with the stipulation that he has to work there a year after end of each semester - if he quits before that period, that semester tuition reimbursement needs to be returned.
He is planning to leave for a better job - and so understands that $7,500 will fall under the above stipulation.
Two questions:
1. Last year when the tuition was reimbursed, it showed up as additional taxable income on their W-2 - and I believe tax was paid.
If he pays this money back in a lump sum, does the employer report this as "negative income" ? Would the 2019 W-2 be reduced by $7,500 paid back ? (this would seem fair and appropriate for person to get back taxes paid last year).
2. Anyone have experience with whether a company would pursue getting this money back ? Negotiable ? I'm assuming they could sell this to a collections company fairly easily.
Thanks !
He is planning to leave for a better job - and so understands that $7,500 will fall under the above stipulation.
Two questions:
1. Last year when the tuition was reimbursed, it showed up as additional taxable income on their W-2 - and I believe tax was paid.
If he pays this money back in a lump sum, does the employer report this as "negative income" ? Would the 2019 W-2 be reduced by $7,500 paid back ? (this would seem fair and appropriate for person to get back taxes paid last year).
2. Anyone have experience with whether a company would pursue getting this money back ? Negotiable ? I'm assuming they could sell this to a collections company fairly easily.
Thanks !