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How long do you have to pay back retention bonus?

An employee receives a $20,000 retention bonus in Year 1. The bonus must be paid back pro rata if the employee leaves the company before Year 5. The retention bonus was included on the employees Form W-2 and subject to all required withholdings (federal and state income tax and FICA) in the year of payment.

Should you accept a retention bonus?

If you had already planned on staying with the company for the duration of the retention agreement, accepting the bonus should be a no-brainer. It may even provide a degree of job security you didnt have before.

How do I write an employee retention plan?

9 strategies for employee retention Build employee engagement. Get recognition and rewards right. Recruit the right employees. Create an exceptional onboarding experience. Provide avenues for professional development. Build a culture employees want to be a part of. Offer winning incentives. Manage to retain.

Can a company make you pay back a retention bonus?

Reimbursement Agreement: Should a retention bonus be paid in periodic installment, an agreement may require the employee to repay or reimburse the company for previously received retention bonuses should the employee leave prior to the final payment.

How do you respond to a retention offer?

Thank you very much for your offer. It has certainly given me a lot to consider as I decide where to take my career. I would be happy to accept if we could increase the current offer by X.

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