Common use of Tax Allocation of Individual Class Payments Clause in Contracts

Tax Allocation of Individual Class Payments. One third (1/3) of each Participating Class Member’s Individual Class Payment will be allocated to settlement of wage claims (the “Wage Portion”). The Wage Portion is subject to tax withholding and will be reported on an IRS W-2 Form. Two thirds (2/3) of each Participating Class Member’s Individual Class Payment will be allocated to settlement of claims for interest and penalties (the “Non-Wage Portion”). The Non-Wage Portion is not subject to wage withholdings and will be reported on IRS 1099 Forms. Participating Class Members assume full responsibility and liability for any employee taxes owed on their Individual Class Payment. The Parties acknowledge and agree that they have bargained over the appropriate tax allocation of the Individual Class Payments in good faith and at arm’s-length, and that the agreed-upon tax treatment fairly comprises the elements of damages sought in Action. The Parties acknowledge and agree that Defendant has made no representations or warranties to anyone regarding the income tax or employment tax consequences of any payment made hereunder. Except for the employer share of FICA, FUTA, and other payroll taxes, Participating Class Members will be responsible for paying any taxes that may be owed on amounts they receive under the Settlement, including the amounts being reported on IRS Form 1099. The Administrator will be responsible for making all payments due under the Settlement and submitting all required IRS W-2 and 1099 Forms with respect to such payments.

Tax Allocation of Individual Class Payments. One third Fifty percent (1/350%) of each Participating Class Member’s Individual Class Payment will be allocated to settlement of wage claims (the “Wage Portion”). The Wage Portion is Portions are subject to tax withholding and will be reported on an IRS W-2 FormForms. Two thirds The remaining fifty percent (2/350%) of each Participating Class Member’s Individual Class Payment will be allocated to settlement of claims for interest interest, penalties, and penalties other non-wage amounts sought in the Action (the “Non-Wage Portion”). The Non-Wage Portion is Portions are not subject to wage withholdings and will be reported on IRS 1099 Forms. Participating Class Members assume full responsibility and liability for any employee taxes owed on their Individual Class Payment. The Parties acknowledge and agree that they have bargained over the appropriate tax allocation of the Individual Class Payments in good faith and at arm’s-length, and that the agreed-upon tax treatment fairly comprises the elements of damages sought in Action. The Parties acknowledge and agree that Defendant has Defendants have made no representations or warranties to anyone regarding the income tax or employment tax consequences of any payment made hereunder. Except for the employer share of FICA, FUTA, and other payroll taxes, Participating Class Members will be responsible for paying any taxes that may be owed on amounts they receive under the Settlement, including the amounts being reported on IRS Form 1099. The Administrator will be responsible for making all payments due under the Settlement and submitting all required IRS W-2 and 1099 Forms with respect to such payments.