Recruitment and Retention Bonuses
Further Considerations on the Refund of a Recruitment Bonus
- A state employee who works part of a month and is on leave without pay (LWOP) for the remainder of the month is considered to have worked the entire calendar month.
However, a state employee who is on LWOP for an entire month is not considered to have worked the entire calendar month.
- An employee who is transferred to another agency, through legislative action or by an agency’s statutory authority to transfer individuals, is:
- Not considered to have terminated employment.
– and – - Is not required to refund the recruitment bonus.
This individual would not be eligible for another recruitment bonus as a result of a legislative transfer into the new agency.
An employee who is hired into a classified position and is later promoted or moved to another classified or unclassified position in the same agency is not considered to have lost entitlement to the bonus.
- Not considered to have terminated employment.
- The recruitment bonus is subject to:
- Federal income tax (FIT) at the supplemental rate.
– and – - Federal Insurance Contributions Act (FICA) withholdings.
If all or part of the recruitment bonus is refunded during the same calendar year it was paid in, the employing agency must adjust FIT and FICA withholdings.
- Federal income tax (FIT) at the supplemental rate.
- If an employee fails to refund a recruitment bonus as required by law, the agency must consider recovering the bonus by payroll deduction from a lump-sum payment of accrued vacation leave, or other appropriate means.
Source
Texas Government Code, Section 659.262.