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 employment-related 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 employer’s tax reporting. The risks of errors in the process and unique issues for both plaintiffs and employers will also be explored.
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 employment-related 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.
Agenda
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
Speakers
Matthew J. Meltzer,
Flaster/Greenberg- Counsel for Flaster Greenberg’s Business & Corporate Department
- Member of the Taxation Group at Flaster Greenberg
- Speaks at several national events regarding the tax treatment of litigation settlements, for both plaintiffs and attorneys
- Published in Law360 on the tax pitfalls to avoid in reporting employment litigation settlements
- Spent 2 years as a labor and employment litigator before transitioning to tax practice
- Advises a leading industry group on the tax treatment of structured settlements
- B.A. degree, Swarthmore College; J.D. degree, Vanderbilt University School of Law
Who Should Attend
This live webinar is designed for primarily designed for attorneys. Other legal professionals may also benefit from attending.
