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

Tax Allocation of Individual Class Payments. Twenty percent (20%) of each Participating Class Member’s Individual Class Payment will be allocated to the settlement of wage claims (“Wage Portion”). The Wage Portions are subject to tax withholding and will be reported on an IRS Form W-2. Eighty percent (80%) of each Participating Class Member’s Individual Class Payment will be allocated to the settlement of claims for interest and penalties (“Non-Wage Portion”). The Non-Wage Portions are not subject to wage withholdings and will be reported on an IRS Form 1099. These allocations represent the Parties’ good faith allocation based on the claims asserted and potential damages related to wages, liquidated damages, interest, and penalties. No opinion regarding the tax consequences of this Settlement to any individual Participating Class Member is being given, or will be given, by Defendant, Defense Counsel, any other Released Party, or Class Counsel. Participating Class Members assume full responsibility and liability for any employee taxes owed on their Individual Class Payments.

Tax Allocation of Individual Class Payments. Twenty percent (20%) of each Participating Class Member’s Individual Class Payment will be allocated to the settlement of wage claims (“Wage Portion”). The Wage Portions are subject to tax withholding and will be reported on an IRS Form W-2. Eighty percent (80%) of each Participating Class Member’s Individual Class Payment will be allocated to the settlement of claims for interest and penalties (“Non-Wage Portion”). The Non-Wage Portions are not subject to wage withholdings and will be reported on an IRS Form 1099. These allocations represent the Parties’ good faith allocation based on the claims asserted and potential damages related to wages, liquidated damages, interest, and penalties. No opinion regarding the tax consequences of this Settlement to any individual Participating Class Member is being given, or will be given, by DefendantDefendants, Defense Counsel, any other Released Party, or Class Counsel. Participating Class Members assume full responsibility and liability for any employee taxes owed on their Individual Class Payments.