Common use of Payment of Federal, State and Local Taxes Clause in Contracts

Payment of Federal, State and Local Taxes. The parties recognize that the awards to eligible Claimants from the Settlement Fund and to Named Plaintiffs from the Settlement Fund and the Individual Named Plaintiffs’ Settlement Fund will be subject to applicable tax withholding and reporting, which will be handled as follows: The Claims Administrator shall serve as trustee of the two Settlement Funds and shall act as a fiduciary with respect to the handling, management, and distribution of amounts therefrom, including the handling of tax-related issues and payments. Specifically, the Claims Administrator shall be responsible for withholding, remitting and reporting of each Claimant’s and Named Plaintiffs’ share of the payroll taxes, and Defendants shall be responsible for the employer’s share of payroll taxes as set forth in this section. The allocation of Claimant Awards from the Settlement Fund and Individual Named Plaintiff Awards from the Individual Named Plaintiffs’ Settlement Fund are 50% for alleged lost wages (and subject to withholding for FICA, FUTA, SUTA, and Medicare) and 50% for other income that is not subject to withholding. See Treas. Reg. §1.468B-4. The parties state that the claims include the EPA claims, which have a liquidated damages provision for double damages, and that there is interest and other damages claims being released. The Claims Administrator shall inform Defendants in writing of the employer’s share of all taxes or contributions required to be paid by Defendants upon receiving all of the Claim Forms and finalizing the Awards. The Claims Administrator shall timely report and remit the employer share of payroll taxes relative to the settlement payments to the appropriate taxing authorities. The Claims Administrator shall be responsible for the timely reporting and remitting of the Employer Payroll Tax Payment to the appropriate taxing authorities. Except with respect to the Employer Payroll Tax Payment, the Claims Administrator shall be responsible to satisfy from the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund any and all federal, state and local employment and withholding taxes, including, without limitation, federal and state income tax withholding, FICA, FUTA, SUTA, Medicare and any state employment taxes. The Claims Administrator shall satisfy all federal, state, local, and other reporting requirements (including any applicable reporting with respect to attorneys’ fees and other costs subject to reporting), and any and all taxes, penalties and other obligations with respect to the payments or distributions from the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund not otherwise addressed herein. The Claims Administrator shall be responsible for procuring Form W-4 and Form W-9, and any other required tax forms, from the Named Plaintiffs and Settlement Class Members. All (i) taxes (including any estimated taxes, interest or penalties) arising with respect to the income earned by the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund, including any taxes or tax detriments that may be imposed on Defendants with respect to income earned for any period during which the Settlement Fund does not qualify as a “Qualified Settlement Fund” for federal and state income tax purposes (hereinafter “Settlement Fund Taxes”), and (ii) expenses and costs incurred in connection with the operation and implementation of this paragraph (including, without limitation, expenses of tax attorneys and/or accountants and mailing and distribution costs and expenses relating to filing (or failing to file) any returns described herein or otherwise required to be filed pursuant to applicable authorities) (hereinafter “Settlement Fund Tax Expenses”), shall be paid out of the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund. Further, Settlement Funds Taxes and Settlement Funds Tax Expenses shall be treated as a cost of the administration of the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund. The parties hereto agree to cooperate with the Claims Administrator, each other, and their tax attorneys and accountants to the extent reasonably necessary to carry out the provisions set forth in this paragraph.

Payment of Federal, State and Local Taxes. The parties Parties recognize that the awards to eligible Claimants from the Settlement Fund and to Named Plaintiffs from the Settlement Fund and the Individual Named Plaintiffs’ Settlement Fund will be subject to applicable tax withholding and reportingreporting as specified in Section VI.A.3., which will be handled as follows: The Claims Administrator shall serve as trustee of the two portion of the Settlement Funds Fund devoted to paying claims (“Claims Fund”) and shall act as a fiduciary with respect to the handling, management, and distribution of amounts therefromthe claims, including the handling of tax-related issues and payments. Specifically, the Claims Administrator shall be responsible for withholding, remitting remitting, and reporting of each Claimant’s the employer and Named Plaintiffsthe Claimants’ share of the payroll taxes, and Defendants shall be responsible for the employer’s share of payroll taxes as set forth in this section. The allocation from wage portion of Claimant Awards payments made from the Class Settlement Fund and Individual Named Plaintiff Awards from the Individual Named Plaintiffs’ Settlement Fund are 50% for alleged lost wages (and subject to withholding for FICA, FUTA, SUTA, and Medicare) and 50% for other income that is not subject to withholding. See Treas. Reg. §1.468B-4. The parties state that the claims include the EPA claims, which have a liquidated damages provision for double damages, and that there is interest and other damages claims being released. The Claims Administrator shall inform Defendants in writing of the employer’s share of all taxes or contributions required to be paid by Defendants upon receiving all of the Claim Forms and finalizing the Awards. The Claims Administrator shall timely report and remit the employer share of payroll taxes relative to the settlement payments to the appropriate taxing authoritiesFund. The Claims Administrator shall be responsible for the timely reporting and remitting of the Employer Payroll Tax Payment to the appropriate taxing authoritiesauthorities and shall indemnify the Defendants for any and all penalties and interest relating to such tax payments, including those arising out of an incorrect calculation and/or late payment of the correct taxes. Except with respect to the Employer Payroll Tax Payment, the The Claims Administrator shall be responsible to satisfy for satisfying from the Settlement Fund and Individual Named Plaintiffs’ Class Settlement Fund any and all federal, state and local employment and withholding taxes, including, without limitation, federal and state income tax withholding, FICA, FUTAMedicare, SUTA, Medicare and any state employment taxes. The Claims Administrator shall satisfy all federal, state, local, and other reporting requirements (including any applicable reporting with respect to attorneys’ fees and other costs and expenses subject to reporting), and any and all taxes, penalties penalties, and other obligations with respect to the payments or distributions from the Settlement Fund and Individual Named Plaintiffs’ Class Settlement Fund not otherwise addressed herein. The Claims Administrator shall be responsible for procuring Form W-4 and Form W-9, and any other required tax forms, from the Named Plaintiffs and Settlement Class Members. All (i) taxes (including any estimated taxes, interest interest, or penalties) arising with respect to the income earned by the Settlement Fund and Individual Named Plaintiffs’ Class Settlement Fund, including any taxes or tax detriments that may be imposed on the Defendants with respect to such income earned for any period during which the Class Settlement Fund does not qualify as a “Qualified Settlement Fund” for federal and state income tax purposes (hereinafter “Settlement Fund Taxes”), and (ii) expenses and costs incurred in connection with the operation and implementation of this paragraph Section (including, without limitation, expenses of tax attorneys and/or accountants and accountants, mailing and distribution costs costs, and expenses relating to filing (or failing to file) any returns described herein or otherwise required to be filed pursuant to applicable authorities) (hereinafter “Class Settlement Fund Tax Expenses”), shall be paid out of the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund. Further, Settlement Funds Taxes and Settlement Funds Tax Expenses shall be treated as a cost of the administration of the Settlement Fund and Individual Named Plaintiffs’ Class Settlement Fund. The parties Parties hereto agree to cooperate with the Claims Administrator, each other, and their tax attorneys and accountants to the extent reasonably necessary to carry out the provisions set forth in this paragraphSection. Other than the withholding and reporting requirements set forth in Section VI.A.3., Claimants shall be solely responsible for the reporting and payment of any federal, state, and/or local income or other tax or any other withholdings, if any, on any of the payments made pursuant to this Settlement Agreement. The Defendants make no representations, and it is understood and agreed that the Defendants have made no representations, as to the taxability of any portions of the settlement payments to any Claimants, the payment of any cost or an award of attorney fees, or any payments to the Named Plaintiffs.

Payment of Federal, State and Local Taxes. The parties recognize that the awards to eligible Claimants from the Settlement Fund and to Named Plaintiffs from the Settlement Fund and the Individual Named Plaintiffs’ Settlement Fund will be subject to applicable tax withholding and reporting, which will be handled as follows: The Claims Administrator shall serve as trustee of the two Settlement Funds and shall act as a fiduciary with respect to the handling, management, and distribution of amounts therefrom, including the handling of tax-related issues and payments. Specifically, the Claims Administrator shall be responsible for the withholding, remitting and reporting of Defendant’s and each Claimant’s and Named Plaintiffs’ Plaintiff’s share of the payroll taxes, and Defendants shall be responsible for the employer’s share of payroll taxes as set forth in this section. The allocation of Claimant Awards from the Settlement Fund Fund. For tax purposes, MetLife and Individual Named Plaintiff Awards from the Individual Named Plaintiffs’ Settlement Fund are 50% for alleged lost wages (financed NELICO Claimants will receive a Form W-2 with respect to any wage portion of a settlement award; non-financed NELICO Claimants will receive a Form 1099; and subject all Claimants will receive a Form 1099 with respect to withholding for FICA, FUTA, SUTA, and Medicare) and 50% for other income that is not subject any portion of a settlement award allocated to withholding. See Treas. Reg. §1.468B-4. The parties state that the claims include the EPA emotional distress claims, which have a liquidated damages provision for double damages, and that there is interest and other damages claims being released. The Claims Administrator shall inform Defendants in writing of the employer’s share of all taxes or contributions required to be paid by Defendants upon receiving all of the Claim Forms and finalizing the Awards. The Claims Administrator shall timely report and remit the employer share of payroll taxes relative to the settlement payments to the appropriate taxing authorities. The Claims Administrator shall be responsible for the timely reporting and remitting of the Employer Payroll Tax Payment to the appropriate taxing authorities. Except with respect to the Employer Payroll Tax Payment, the Claims Administrator shall be responsible to satisfy pay from the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund the employer’s share of any and all federal, state and local employment and withholding taxes, including, without limitation, federal and state income tax withholding, FICA, FUTA, SUTA, Medicare Medicare, and any state employment taxestaxes (hereinafter “Employer Payroll Tax Payment”). The Claims Administrator shall inform Defendant in writing of the employer’s share of all taxes or contributions required to be paid by Defendant upon receiving all of the Claim Forms and finalizing the Awards. The Claims Administrator shall timely report and remit the employer share of the Employer Payroll Tax Payment to the appropriate taxing authorities. The Claims Administrator shall indemnify Defendant for any shortfall in tax withholdings or penalty caused by an incorrect calculation and/or interest caused by a late deposit of any taxes or contributions addressed herein, solely to the extent such incorrect calculation and/or late deposit was caused by the Claims Administrator’s gross negligence or willful misconduct. Subject to the Claims Administrator’s obligation to comply with applicable laws, the parties anticipate that any amounts designated as interest shall not be subject to withholding and shall be reported, if required, to the IRS and to the Claimants on Form 1099-INT. Although Defendant shall have access to individual allocation amounts solely for tax and reporting purposes, Defendant shall not have access to Settlement Class Member Claim Forms. The Claims Administrator shall satisfy all federal, state, local, and other reporting requirements (including any applicable reporting with respect to attorneys’ fees and other costs subject to reporting), and any and all taxes, penalties and other obligations with respect to the payments or distributions from the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund not otherwise addressed herein. Provided, however, that Claimants are fully responsible for the payment of any and all federal, state or local taxes resulting from or attributable to distributions that they receive from the Settlement Fund, excluding the Employer Payroll Tax Payment and excluding amounts properly withheld from the distributions. The Claims Administrator shall be responsible for procuring Form W-4 and W-4, Form W-9, and any other required tax forms, forms from the Named Plaintiffs and Settlement Class Members. All (i) taxes (including any estimated taxes, interest or penalties) arising with respect to the income earned by the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund, including any taxes or tax detriments that may be imposed on Defendants Defendant with respect to income earned for any period during which the Settlement Fund does not qualify as a “Qualified Settlement Fund” for federal and state income tax purposes (hereinafter “Settlement Fund Taxes”), and (ii) expenses and costs incurred in connection with the operation and implementation of this paragraph (including, without limitation, expenses of tax attorneys and/or accountants and mailing and distribution costs and expenses relating to filing (or failing to file) any returns described herein or otherwise required to be filed pursuant to applicable authorities) (hereinafter “Settlement Fund Tax Expenses”), shall be paid out of the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund. Further, Settlement Funds Fund Taxes and Settlement Funds Fund Tax Expenses shall be treated as a cost of the administration of the Settlement Fund and Individual Named Plaintiffs’ Settlement Fund. The parties hereto agree to cooperate with the Claims Administrator, each other, and their tax attorneys and accountants to the extent reasonably necessary to carry out the provisions set forth in this paragraph.