So my company was just recently bought out and we started hemorrhaging people - across all departments we lost about 20% of the work force over a 3 month period so the new company offered a retention bonus - 3 months of salary up front (paid now) with the stipulation of staying 1 year.

For my position I'm horribly under paid based on the market rate. I'm a supervisor and the last 3 people who have left from my department were 2 levels under me. They either stayed at their same title at a new company or got a single level promotion (still a level lower than me, none are supervisors) and all 3 either make what I make or more.

When this was brought up to my boss and HR, HR promised that the plan is to look at everyones pay and adjust to market value. Unfortunately now that they have given everyone retention bonuses they are no longer looking to adjust people's salaries as they have us locked in for a year.

Additionally because we are so under staffed and we are having a hard time filling postions (due to the pay) I'm working 60 hours a week salary and I'm over it at this point. But unfortunately I have 11 months before I can leave without having to pay back the retention bonus.

My question - if i do leave and pay the bonus back what happens to the taxes that were already taken out? Do I just have my taxes adjusted at the end of the year with the IRS? Am I basically screwed tax wise if I leave before my 1 year is up?