Employment Litigation and Claim Settlements: Maximizing Tax Benefits and Avoiding Penalties
Tax Considerations for Employers When Drafting Settlement Agreements
Note: CPE credit is not offered on this program
Recording of a 90-minute CLE video webinar with Q&A
This CLE course will provide employment counsel and tax advisers guidance for structuring complex settlements and complying with complex tax reporting and withholding requirements applicable to employment claims. The panel will discuss best practices for employers to structure settlements, maximize tax benefits, and avoid penalties when allocating settlement proceeds. The panel will also discuss the reporting of payments and the tax implications of plaintiff requests in settlement agreements.
- Settlement payments that must be reported
- Tax-deductible settlement payments
- Settlement agreement structuring options
- Settlement agreement drafting strategies
The panel will review these and other key issues:
- What types of options exist for structuring an employment settlement?
- What settlement payments are taxable as wage income to the recipient in an employment dispute?
- What types of settlement payments and related attorneys' fees are tax-deductible by the employer?
- What tax reporting obligations do employers have following a settlement?
- What are best practices for anticipating and addressing tax issues when negotiating employment dispute settlement agreements?
- What are the tax issues in the context of class actions and collective actions?
Joshua P. Katz
Higgs Fletcher & Mack
Mr. Katz practice focuses on effectively and efficiently handling tax controversy matters, which include audits,... | Read More
Mr. Katz practice focuses on effectively and efficiently handling tax controversy matters, which include audits, appeals, tax liens, levies, installment agreements and offers in compromise. He also assists clients with corporate and LLC issues, from formation to dissolution.Close
Matin (Mat) Momen
Vice President & Associate General Counsel
Mr. Momen is a Vice President & Associate General Counsel in MetLife’s Law Department where he leads the... | Read More
Mr. Momen is a Vice President & Associate General Counsel in MetLife’s Law Department where he leads the Product Tax and ERISA Unit, which is responsible for advising on the ERISA and federal/state tax aspects of MetLife’s life insurance, annuities, pension risk transfers, voluntary benefits and structured settlement products as well as its institutional investment offerings. Prior to MetLife, he was a Senior Director in the Law Department at AXA-Equitable, where he advised on similar tax matters. Mat received his J.D. from the University of Pittsburgh School of Law and LL.M. (Master of Tax) from the University of Washington School of Law.Close
Robert W. (Rob) Wood
Mr. Wood handles a wide range of tax planning and tax controversy matters. He also serves as an expert witness on tax... | Read More
Mr. Wood handles a wide range of tax planning and tax controversy matters. He also serves as an expert witness on tax issues in legal disputes. Mr. Wood is best known for his expertise advising plaintiffs, defendants, and lawyers on the tax treatment of legal settlements and judgments. He authored the leading book on this topic, Taxation of Damage Awards & Settlement Payments (5th Ed 2021), as well as the Bloomberg Tax Management Portfolio, Tax Aspects of Settlements and Judgments (522).Close