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Labor & Employment Civil Remedies Tax

Read need-to-know updates, commentary, and analysis on Labor & Employment issues written by leading professionals.

Changes to the Taxation of Termination Payments

by White & Case LLP on

Termination payments are payments made to individuals as a result of their loss of employment. They are often made up of different components including statutory redundancy, compensation for loss of office, damages and...more

IRS Confirms California “Waiting Time Penalties” Are Not Wages For Federal Income Tax Purposes

A recent IRS information letter confirms that “waiting time penalties” paid under California law are not wages for federal income tax withholding purposes. Section 203 of the California State Labor Code imposes penalties on...more

The ERISA Litigation Newsletter - March 2016

by Proskauer Rose LLP on

Editor’s Overview - This month we review the U.S. Supreme Court’s decision in Montanile v. Board of Trustees of National Elevator Industries Health Benefit Plan where the Supreme Court considered the scope of...more

The ERISA Litigation Newsletter - February 2016

by Proskauer Rose LLP on

Editor's Overview - This month's article reviews a few non-ERISA cases before the U.S. Supreme Court, which may, depending on the breadth of the decisions, impact ERISA litigation. First, in Spokeo, Inc. v. Robins, the...more

Best in Law: Tax Ruling Confirms Protocol on Job-Related Judgments

by Best Best & Krieger LLP on

The California Court of Appeal recently confirmed that employment-related settlements or judgments are wages from which employers must withhold payroll taxes. In Cifuentes v. Costco Wholesale Corp., Cifuentes...more

Illinois Appellate Court Affirms Dismissal of State Tax Qui Tam Lawsuit

by McDermott Will & Emery on

On March 31, 2015, the Illinois Appellate Court issued an Opinion affirming the dismissal of a qui tam lawsuit filed by a law firm acting as a whistleblower (Relator law firm) on behalf of the State of Illinois against QVC,...more

IRS Scripts a New Tune with Final Whistleblowing Regulations

Section 7623 of the Internal Revenue Code (the “Code”), added in 1954, authorizes the Treasury Secretary to pay an award as he deems necessary for “(1) detecting underpayments of tax, or (2) detecting and bringing to trial...more

IRS amends whistleblower regulations to expand eligible whistleblowers and potentially increase award amounts

by Saul Ewing LLP on

Whistleblower incentives and awards are not unique to the False Claims Act or Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. On August 12, 2014, the Internal Revenue Service (“IRS”)issued long-awaited...more

News from the Health Law Gurus™

Former Walmart Exec to Help Manage HHS — Leslie Dach, former Executive Vice President of Corporate Affairs for Walmart, will assume the role of Senior Counsel of the HHS, according to a press release on Wednesday. ...more

Appellate Court Notes

by Pullman & Comley, LLC on

AC35823 - Stratford v. Wilson - When Mayor allegedly overpaid a departing employee as he was leaving office himself, the town sued the former employee under the action of “indebitatus assumpsit for money had &...more

Pension News

by DLA Piper on

Welcome to DLA Piper’s Pensions News publication in which we report on recent developments in pensions legislation, guidance and case law, as well as keeping you up to speed on what to look out for in the coming months. This...more

Preserve Your Right To A Payroll Tax Refund

by Gray Reed & McGraw on

A disagreement between two federal appeals courts regarding whether payroll taxes must be paid on severance payments made to laid-off workers has landed the issue in front of the U.S. Supreme Court. Oral arguments began...more

U.S. Tax Court Decision Shows Importance of Carefully Drafting Settlement Agreements

by Littler on

In Sharp v. Commissioner, the United States Tax Court once again demonstrated the importance of carefully crafting settlement agreements and reaffirmed that emotional distress damages are taxable income to the recipient....more

Settling a Lawsuit with an Employee or Former Employee? Don’t Forget the Tax Consequences

by Butler Snow LLP on

The IRS recently issued guidance that may be of particular interest to anyone with employees or former employees. In a Legal Advice issued by Field Attorneys (LAFA 20133501F), the IRS explained the tax treatment and reporting...more

IRS Confirms its Position that Settlement Payments Allocated to Attorneys’ Fees are Not Wages

Employers frequently ask whether the portion of an employment-related settlement allocated to attorneys’ fees must be treated as wages and subjected to income and employment tax withholding and Form W-2 reporting where a...more

New IRS Guidance On Tax Treatment Of Attorney’s Fees

The IRS recently released a memorandum advising taxpayers on the proper tax characterization of attorney’s fee payments in connection with a settlement of or judgment in an employment dispute. Courts have long held...more

IRS Reaffirms Advice on the Proper Employment Tax Treatment of Settlements

by Littler on

On August 30, 2013, the IRS reiterated its longstanding positions on the proper tax treatment of litigation settlements with current or former employees. In its Chief Counsel Advice (CCA) Memorandum 20133501F, the IRS...more

IRS Says Class Action Settlement Incentive Awards in Wage Based Claims Are Taxable As Wages

by BakerHostetler on

On March 15, 2013, the IRS issued a private letter ruling responding to a request for a determination of whether incentive awards paid to class representatives under a settlement agreement resolving a class action suit...more

Federal Appeals Court Holds That Supplemental Unemployment Compensation Benefits Are Not ‘Wages’ Subject To FICA Taxation,...

by Pepper Hamilton LLP on

In an important recent decision, United States v. Quality Stores, Inc., et al., Case No. 01-1563, 2012 U.S. App. LEXIS 18820 (6th Cir. Sept. 7, 2012), the U.S. Court of Appeals for the Sixth Circuit held that supplemental...more

Married Same-Sex Couples Should File Protective Claims For Tax Refunds Now

by Carlton Fields on

When the Supreme Court ultimately decides United States v. Windsor, it could strike down the portion of the Defense of Marriage Act (DOMA) that prohibits married same-sex couples from receiving the federal benefits provided...more

Deadline for Filing FICA Tax Refunds is April 15

As previously reported, the payment of certain severance benefits may be exempt from FICA taxes. Under the Sixth Circuit’s decision in Quality Stores, severance pay made in connection with an involuntary separation from...more

File for FICA Tax Refunds Before April 15

As previously reported, the payment of certain severance benefits may be exempt from FICA taxes. Under the Sixth Circuit’s decision in Quality Stores, severance pay made in connection with an involuntary separation from...more

A Month in UK Employment Law - January 2013

by Proskauer Rose LLP on

In This Issue: - 2013 – What's On the Horizon - Changes Confirmed - Changes Expected In 2013 But No Implementation Date ...more

Employers Should Evaluate Refund Opportunities Following Sixth Circuit Ruling on FICA Taxes and Severance Payments

by Ballard Spahr LLP on

In United States v. Quality Stores, Inc., the Sixth Circuit held that payments of supplemental unemployment benefits (SUB payments) are not taxable wages subject to FICA tax withholding. Although the issue is not finally...more

Possible FICA Tax Savings on Severance Pay

A recent Sixth Circuit Court of Appeals decision concluded that severance pay provided to employees as a result of layoff or discontinuance of a plant, operations or other similar condition is exempt from FICA taxes....more

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