Employment Litigation and Claim Settlements: Maximizing Tax Benefits, Avoiding Penalties When Allocating Proceeds
Tax Withholding Requirements for Employers When Drafting Settlement Agreements and Reporting Payments
Recording of a 90-minute CLE webinar with Q&A
This CLE webinar will provide employment counsel and tax advisers guidance for structuring complex settlements and navigating and complying with complex tax reporting and withholding requirements applicable to employment claims. The panel will discuss best practices for employers looking to structure settlements, maximize tax benefits, and avoid penalties when allocating settlement proceeds. The panel will provide practical guidance for drafting complex settlement agreements. The panel will also discuss the reporting of payments and the tax implications of plaintiff requests in settlement agreements, including non-wage treatment, personal physical sickness allocations, requests that no IRS Form 1099 be issued, and employer reliance on tax indemnifications.
- Settlement payments that must be reported
- Settlement payments that do not have to be reported
- 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 types of settlement payments in an employment dispute are considered taxable income?
- What tax reporting obligations do employers have following a settlement?
- What are some 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?
A. Craig Cleland
Ogletree Deakins Nash Smoak & Stewart
Mr. Cleland defends employers in litigation—including in class actions—and counsels them on compliance and... | Read More
Mr. Cleland defends employers in litigation—including in class actions—and counsels them on compliance and risk management. He is also Co-Chair of the firm’s Class Action Practice Group. He teaches Employment Discrimination Law as an Adjunct Professor at Georgia State University College of Law.Close
Mr. Gagnon is a partner in the Chicago office of Seyfarth Shaw LLP. A member of the Labor & Employment... | Read More
Mr. Gagnon is a partner in the Chicago office of Seyfarth Shaw LLP. A member of the Labor & Employment Department, he focuses his practice on Complex Discrimination and Wage and Hour Litigation.Close
Jennifer A. Riley
Ms. Riley practices in the employment litigation area, with a particular emphasis on complex collective and class... | Read More
Ms. Riley practices in the employment litigation area, with a particular emphasis on complex collective and class action proceedings. She regularly represents companies facing class actions, collective actions, pattern or practice lawsuits, and systemic investigations, involving hundreds to thousands of putative class members. Ms. Riley counsels and defends employers from a range of employment law theories, including claims of race, age, gender, and disability discrimination, sexual harassment, retaliation, and alleged wage and hour violations.Close