Author: EdenATO(Community Support)Community Support 25 July 2023
Hello there @anissan,
Congrats on your bonus! If you find another job and pay the amount back, we consider this a repayment of overpaid amounts.
How this is dealt with will depend on when the choice is made and when you pay the amount back.
If you pay the amount back in the same financial year you got it you don't pay back the withheld amount. The employer will just amend their report to claim it back.
If you pay the amount back in a different financial year, they can't change the report. This means you must pay back the full $25,000. The amount reported as withheld by the employer will stay the same.
When you lodge your tax for that year, it will calculate your tax rates. Any overpayments will be returned as part of a refund.
You will need to report the income in your tax return the year that you receive it. If things change and you pay the amount back, you will need to amend that year to remove the income.
Author: Bergs_01(I'm new)I'm new 8 June 2024
Very helpful answer - thank-you.
I just want to clarify something, as I am in a similar situation to anissan above. I'm leaving the company that paid me a sign on bonus and they withheld tax from it (as they should). Unfortunately, things just didn't work out between me and my employer - they were not the best fit for me.
My understanding from the above is that if I pay it back before the end of the same financial year, I only need to pay back the amount received.
The bit I want to clarify is what you mean by "The employer will just amend their report to claim it back." Do you mean they will directly recoup the funds withheld for tax? Does this mean that my taxable income and tax withheld (when finalised by my employer) will not include the bonus and the tax withheld? In effect, appearing on my final PAYG statement as though the bonus were never paid?
Author: CaroATO(Community Support)Community Support 13 June 2024
Hi @Bergs_01,
You're spot on!
- Absolutely! The money going out and coming in will be the same for both you and your employer.
- Yes.
- If the bonus was given to you and given back to your employer in the same financial year, your PAYGW summary statement won't show the transactions.
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