Quote:
Originally Posted by McLovin
I think there are all sorts of ways these types of settlements are characterized for tax purposes. For example, not as back wages, but as some other kind of non-taxable damages or penalty, etc.
If there are significant numbers involved, you should speak with a CPA and or lawyer familiar with it.
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The number is not super significant compared to many huge settlements that you read about it - but, it's slightly less than one year's salary.
We are working thru a mediator, who is a retired judge, and he tells me there is no way around this because it "is indeed" back wages. The employer is not going to be flexible in any way. It would be different if this was a personla injury situation. However, a portion of the payment is to cover my legal expense, which includes the cost of the mediator (and that is definately not back wages).
My primary issue is that I definately feel the employer should not get out of their 1/2 of the SS & MC.
Thanks again !