Sign-On Bonus Repayment Agreement

# Sign-On Bonus Repayment Agreement This Sign-On Bonus Repayment Agreement ("Agreement") is entered into as of ___________ between: **Employer:** ___________, located at ___________ ("Employer"); and **Employee:** ___________, Position: ___________, Employee ID: ___________ ("Employee"). --- ## 1. Sign-On Bonus Employer agrees to pay the Employee a sign-on bonus of **___________** (the "Bonus"), subject to applicable tax withholding, in consideration for the Employee's acceptance of employment and commitment to the service period in Section 2. **Payment Schedule:** ___________ **Payment Method:** ___________ The Employee understands that the Bonus will be reported as taxable compensation on Form W-2 and that the net amount received will be after standard payroll tax withholding at Employer's supplemental wage withholding rate. ## 2. Minimum Service Period As consideration for the Bonus, the Employee agrees to remain employed by Employer in good standing for a minimum of **___________ months** following the Employee's first day of employment ("Commitment Period"). **Employment Start Date:** ___________ **Commitment Period End Date:** ___________ ## 3. Repayment Obligation If the Employee voluntarily resigns or is terminated for cause before the end of the Commitment Period, the Employee is obligated to repay Employer the Repayment Amount calculated as follows: **Repayment Schedule:** ___________ **Example Calculation (for pro-rated monthly option):** If the Bonus is $10,000, the Commitment Period is 12 months, and the Employee departs at month 4, the Repayment Amount is (8 ÷ 12) × $10,000 = $6,667 (gross). **Repayment Basis — Gross or Net:**