Tax Consequences of Employment-Related Litigation and Settlements

$149.00

SKU: 410730

Description

Learn how to minimize the impact of employment related litigation and settlements to your bottom line.
This presentation will introduce HR professionals to common issues that arise in the context of employment litigation settlements. The program will cover the general rules that apply to determining the income tax treatment of a litigation settlement, with an emphasis on the forms of damages that a plaintiff in an employmentrelated lawsuit may recover. Concerning employment lawsuits, the program will address the documents that are key to determining how the settlement payment should be allocated across the various claims and how that affects the employers tax reporting. The risks of errors in the process and unique issues for both plaintiffs and employers will also be explored.

Date: 2024-01-11 Start Time: 1:00 PM ET End Time: 2:05 PM ET

Learning Objectives

* You will be able to define the general tax treatment of litigation settlements.

* You will be able to differentiate tax treatment for various types of claims, including employmentrelated settlements.

* You will be able to identify the components of employment settlements classified as ordinary income.

* You will be able to explain the concept of structured settlements in the context of taxtion.

Tax Treatment of Litigation Settlements Generally
• Origin of the Claim Rule
• Employment Settlements: Ordinary Income
• Wages
• Unpaid Benefits
• Liquidated Damages
• Emotional Distress
• Punitive Damages

Documentation and Tax Reporting
• Complaint • the Claims Raised
• Settlement Agreement • the Claims Actually Settled
• Tax Forms
• W-2
• 1099 (Misc, Nec)
• Tax Reporting in Class Actions

Risks of Getting It Wrong
• Employer Risks
• Employee Risks

Unique Issues
• Cutting the Check: Plaintiff as Payee, Plaintiff’s Attorney as Payee, and Corresponding Reporting Obligations
• Structured Settlements
• For the Plaintiff: Deductibility of Legal Fees

CLE (Please check the Detailed Credit Information page for states that have already been approved) ,CPE ,Additional credit may be available upon request. Contact Lorman at 866-352-9540 for further information.

Matthew J. Meltzer-Flaster/Greenberg