Common use of Taxes Owed on Payments to Class Members Clause in Contracts

Taxes Owed on Payments to Class Members. Plaintiff and QNAP are asking the Court to approve an allocation of 20% of each Individual Class Payment to taxable wages (“Wage Portion”) and 80% to interest and penalties, and 100% of the Former Non- Exempt Employee Payment to penalties (“Non-Wage Portion.). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. QNAP will separately pay employer payroll taxes it owes on the Wage Portion. The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms. Although Plaintiff and QNAP have agreed to these allocations, neither side is giving you any advice on whether your Payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any Payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.

Taxes Owed on Payments to Class Members. Plaintiff Plaintiffs and QNAP Defendants are asking the Court to approve an allocation of 20% one-third (1/3) of each Individual Class Payment to taxable wages (“Wage Portion”) and 80% two-third (2/3) to interest and penalties, and 100% of the Former Non- Exempt Employee Payment to penalties (“Non-Wage Portion.). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. QNAP Defendants will separately pay employer payroll taxes it owes they owe on the Wage Portion. The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms. Although Plaintiff Plaintiffs and QNAP Defendants have agreed to these allocations, neither side is giving you any advice on whether your Payments payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any Payments payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.

Taxes Owed on Payments to Class Members. Plaintiff and QNAP Defendants are asking the Court to approve an allocation of 2050% of each Individual Class Payment to taxable wages (“Wage Portion”) and 8050% to interest and interest, penalties, and 100% of other non-wage amounts sought in the Former Non- Exempt Employee Payment to penalties Action (“Non-Wage Portion.”). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. QNAP Defendants will separately pay employer payroll taxes it owes they owe on the Wage Portion. The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Wage Portions of the Individual Class Payments on IRS 1099 Forms. Although Plaintiff and QNAP Defendants have agreed to these allocations, neither side is giving you any advice on whether your Payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any Payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.

Taxes Owed on Payments to Class Members. Plaintiff and QNAP XxXxxxx Nut are asking the Court to approve an allocation of 20% of each Individual Class Payment to taxable wages (“Wage Portion”) and 80% to interest and penalties, and 100% of the Former Non- Exempt Employee Payment to penalties (“Non-Wage Portion.”). The Wage Portion is subject to withholdings and will be reported on IRS W-2 Forms. QNAP XxXxxxx Nut will separately pay employer payroll taxes it owes on the Wage Portion. The Individual PAGA Payments are counted as penalties rather than wages for tax purposes. The Administrator will report the Individual PAGA Payments and the Non-Non- Wage Portions of the Individual Class Payments on IRS 1099 Forms. Although Plaintiff and QNAP XxXxxxx Nut have agreed to these allocations, neither side is giving you any advice on whether your Payments are taxable or how much you might owe in taxes. You are responsible for paying all taxes (including penalties and interest on back taxes) on any Payments received from the proposed Settlement. You should consult a tax advisor if you have any questions about the tax consequences of the proposed Settlement.