Settlement Payments for Employment-Based Claims: Taxation and Reporting | Practical Law

Settlement Payments for Employment-Based Claims: Taxation and Reporting | Practical Law

This Article discusses the US federal income tax treatment of amounts received by employees in settlement of employment-related disputes, and the reporting and income and payroll tax withholding responsibilities for employers making these payments.

Settlement Payments for Employment-Based Claims: Taxation and Reporting

Practical Law Article 7-535-5006 (Approx. 21 pages)

Settlement Payments for Employment-Based Claims: Taxation and Reporting

by Brian S. Masterson, Butler Snow LLP, with Practical Law Labor & Employment
Law stated as of 30 Dec 2020USA (National/Federal)
This Article discusses the US federal income tax treatment of amounts received by employees in settlement of employment-related disputes, and the reporting and income and payroll tax withholding responsibilities for employers making these payments.