Settling employment cases can be a harrowing experience. Plaintiffs have often experienced challenges and struggles at their employment prior to filing their claim. Reaching a settlement brings a sense a relief as a potentially difficult chapter in the plaintiff’s life draws to a close. However, the elements of a claim and its settlement agreement impact how the settlement will be taxed. Plaintiffs and their employers often have questions regarding the most tax efficient resolution of an employment tax claim.
On May 15, 2024, at 12:30pm (PST), Michele Weiss, principal at Holtz, Slavett & Drabkin, APLC, will discuss tax issues faced by employees and employers in settlement agreements for labor law matters. The discussion will be part of the webinar panel “Settlement Agreements in Employment Cases: Understanding Tax Issues and Key Provisions” presented by the Beverly Hills Bar Association Labor & Employment Law Section.
Michele’s presentation will include a discussion of the types of claims that can be exempt from taxation, the types of legal fees and costs that are deductible from a damage award, allocating a damage award to different elements of a claim and the tax impact of the allocation, and the characterization of a damage award as community or separate property.
For more information about the program and to register for the webinar, please click on the link below:
If you have questions regarding the tax impact of a settlement agreement, you can reach out to Michele at 310-550-6200 or mweiss@hsdtaxlaw.com.