TGBill, I'm looking at the reasons they got the raise to begin with. It basically doubled the taxable income and may have even put them in another tax bracket for 2017. Having to "pay back" the perks would only be a reportable event if they were taxed on such perks to begin with. But for the employer to provide what I interpret as "free untaxed perks" in the form of a car, and then later give me a raise (thus increasing the business expenses) and then using that raise to pay back the perks is just ethically wrong. If they have to be paid back, they were never perks to begin with and a misrepresentation to the employee was done here. That's just wrong. Were it me, at a minimum I would have no problem spending a few hundred bucks for a legal consultation with a lawyer on this, to help me determine if it was worth pursuing further on the legal front.
