Allocation and Disbursement of Settlement Awards. Fifty percent of each Eligible Class Member’s final Settlement Award will be treated as back wages (the “Wage Awards”), and thus subject to normal employee payroll tax withholdings and employer payroll tax payments. The Wage Awards shall be reported to taxing authorities on IRS Form W-2. Subject to Superior Court and Bankruptcy Court approval, the Settlement Administrator shall deduct the employee’s share of payroll taxes from the Wage Awards to each Eligible Class Member and shall remit that amount to the appropriate taxing authorities. Subject to Superior Court and Bankruptcy Court approval, the Settlement Administrator shall be responsible for paying all required employer-side payroll taxes on the Wage Awards to Eligible Class Members (including employer’s share of FICA, FUTA, and any other employer-side, Washington state requirements). The Settlement Administrator shall then remit that payment to the appropriate taxing authorities. Subject to Superior Court and Bankruptcy Court approval, the payment of the required employer-side payroll taxes shall be included in the Settlement Award, and that amount shall be deducted from the Settlement Award and would reduce the Class Award accordingly. Subject to Superior Court and Bankruptcy Court approval, the Settlement Administrator shall allocate payments to time periods as necessary to comply with applicable tax laws. The Settlement Administrator shall be responsible for performing all payroll functions reasonably necessary to administer the Settlement in conformity with this Agreement, including, but not limited to, preparing the Wage Award checks to be paid to Eligible Class Members and reporting payment of those Wage Awards to all required taxing and other authorities arising out of or relating to those Wage Awards. The other fifty percent of each Eligible Class Member’s final Settlement Award will be treated as prejudgment interest and exemplary damages (the “Exemplary Awards”) as to which there will be no employee payroll tax withholdings or employer payroll tax payments. This portion of each Eligible Class Member’s final settlement award is a Class 7 general unsecured claim. The Settlement Administrator will issue all Exemplary Awards and will report those awards to taxing authorities as necessary on individual IRS Forms 1099.
Allocation and Disbursement of Settlement Awards. Each Settlement Award to a Settlement Class Member shall be allocated as 40 percent wages (the “Wage Award”) and 60 percent non-wage damages (the “Non-Wage Award”).
Allocation and Disbursement of Settlement Awards. Each Eligible Class Member’s final Settlement Award will be treated as (a) 50 percent for back wages (the “Wage Award”), and (b) 50 percent for exemplary damages and pre‐judgment interest (the “Non‐ Wage Award”). The Settlement Administrator will issue the Settlement Awards directly to each Settlement Class Member as at least two separate checks:
i. Distribution A: Within twenty‐one (21) days of the Effective Date, the Settlement Administrator shall issue directly to each Settlement Class Member a check paid from Net Settlement Fund A that equals the member’s share of the Net Settlement Funds being distributed at that time in accordance with Section II.C.2. This check shall reflect the first installment of the total Wage Award owed to the Settlement Class Member, less normal employee payroll tax withholdings and the first installment of the total Non‐Wage Award owed to the Settlement Class Member, without any payroll tax deductions.
ii. Distribution B: Within twenty‐one (21) days of the final Monthly Payment made by Defendants or, in the event Defendants fail to make all required Monthly Payments, within twenty‐one (21) days of Class Counsel’s determination that a distribution of funds is appropriate in accordance with Section II.B.5.c, the Settlement Administrator shall issue directly to each Settlement Class Member a check paid from Net Settlement Fund B that equals the member’s share of the Net Settlement Funds being distributed at that time in accordance with Section II.C.2. Wage Awards are subject to normal employee payroll tax withholdings. For any distribution of Net Settlement Funds, the Settlement Administrator shall deduct each Settlement Class Member’s share of payroll taxes from the member’s Wage Award and shall promptly report and remit that amount to the appropriate taxing authorities after the distribution. Defendants shall cooperate with and assist the Settlement Administrator as may be reasonably necessary in conjunction with the Settlement Administrator’s calculations, withholdings, issuance, distribution, and reporting of Settlement Award checks and related taxes. The Settlement Administrator and Defendants shall cooperate and coordinate with each other with respect to the calculation, reporting, and payment of all payroll taxes and withholdings in accordance with all applicable laws and requirements of government taxing authorities. For each tax year in which distributions are made, the Settlement Administrator shall report the Wage Awa...
