Tax Treatment of Settlement Awards. 15132937v.1 For income tax purposes, the Parties agree that, if required by law, Settlement Class Participant settlement awards shall be allocated as non-wage income and shall not be subject to required withholdings and deductions. The Settlement Class Representative’s Service Award shall be allocated as non-wage income and shall not be subject to required withholdings and deductions and shall be reported as non-wage income as required by law. If required by IRS regulations, the Settlement Administrator shall issue to each Settlement Class Participant an IRS Form 1099. Other than the reporting requirements herein, Settlement Class Participants shall be solely responsible for the reporting and payment of their share of any federal, state and/or local income or other taxes on payments received pursuant to this Settlement Agreement.
Tax Treatment of Settlement Awards. To receive a payment, Settlement Class Members must submit an IRS Form W‐9 with their claim form. Settlement Class Members who submit valid and timely claims and W‐9 forms will be issued IRS Forms 1099 and will be responsible for all associated taxes. HDL will pay no employment taxes on the amounts distributed to Settlement Class Members.
Tax Treatment of Settlement Awards. Fifty percent of each settlement award paid to a member of the Settlement Classes will be treated as wages and subject to normal tax withholding and shall be reported to the taxing authorities and the member on an IRS Form W‐2. The other fifty percent of the settlement award will be treated as non‐wages (penalties, enhancements, and prejudgment interest) on which there will be no tax withholding and for which an IRS Form 1099 (marked “Other Income”) shall be issued to the taxing authorities and the member. In addition to the money it is contributing to the Class Fund described above, Ralph’s is also paying all required employer‐side taxes incurred as part of the Settlement. Ralph’s’ payment of these employer‐side taxes will not decrease the funds available to members of the Settlement Classes.
Tax Treatment of Settlement Awards. For income tax purposes, the Parties agree that the Named Plaintiffs and Settlement Class Participants shall have the pro rata portion of their damages attributable to earned but unpaid wages and/or earned but unpaid overtime wages subject to deductions for income tax withholding and the employee's share of FICA and Medicare taxes on that portion of the distribution and reported on an IRS Form W2 for the tax year 2022. The liquidated/treble damages and interest payments portion of the settlement paid to Named Plaintiffs and the Settlement Class Participants shall not be subject to withholding, and Defendant shall provide Named Plaintiffs and the Settlement Class Participants an IRS Form 1099 for the tax year 2022. The Parties agree that the allocation of each payment made to Settlement Class Representatives and the Settlement Class Participants shall be designated one-third (1/3) as W-2 wages and two-thirds (2/3) as 1099 wages. The Named Plaintiffs’ Service Awards shall be allocated as non-wage income and shall not be subject to withholdings and shall be reported as non-wage income as required by law, all subject to Defendants’ timely issuance of a 2022 IRS Form 1099. Other than the reporting requirements herein, Named Plaintiffs’ and Settlement Class Participants shall be responsible for the reporting and payment of their share of any federal, state and/or local income or other taxes on payments received pursuant to this Settlement Agreement that may otherwise be due on the same.
Tax Treatment of Settlement Awards. Settlement Class Participant settlement awards and the Service Award to the Settlement Class Representative shall be classified as non-wage income, and the Settlement Administrator will report the payments on a 1099 form to the extent required by law. If required by IRS regulations, the Settlement Administrator shall issue to each Settlement Class Participant and the Settlement Class Representative an IRS Form 1099. Other than the reporting requirements herein, Settlement Class Participants and the Settlement Class Representative shall be solely responsible for the reporting and payment of their share of any federal, state and/or local income or other taxes on payments received pursuant to this Settlement Agreement. Defendant shall have no responsibility as to taxes, interest, penalties, or other amounts due with respect to any payments or awards made by the Settlement Administrator from the Gross Fund or received by Settlement Class Participants, Settlement Class Representative and/or Settlement Class Counsel. It is understood and agreed that Defendant takes no position and offers no advice regarding how any Settlement Class Participant, the Settlement Class Representative, or Settlement Class Counsel choose to treat any payment made pursuant to this Agreement for tax or any other purpose.
