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

Tax Allocation of Individual Class Payments. The Settlement Administrator will pay the amount of the Participating Class Members’ portion of normal payroll withholding taxes out of each person’s Individual Settlement Share. The Settlement Administrator will calculate the amount of the Participating Class Members’ and Defendant’s portion of payroll withholding taxes. The Settlement Administrator will submit Defendant’s portion of payroll withholding tax calculation to Defendant for additional funding and forward those amounts along with each person’s Individual Settlement Share withholdings to the appropriate taxing authorities. 20% of each Participating Class Member’s Individual Class Payment will be allocated to settlement of wage claims (the “Wage Portion”). The Wage Portions are subject to tax withholding and will be reported on an IRS W-2 Form. The 80% of each Participating Class Member’s Individual Class Payment will be allocated to settlement of claims for [e.g., interest and penalties] (the “Non- Wage Portion”). The Non-Wage 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 taxes owed on their Individual Class Payment.

Tax Allocation of Individual Class Payments. The Settlement Administrator will pay the amount of the Participating Class Members’ portion of normal payroll withholding taxes out of each person’s Individual Settlement ShareClass Payment. The Settlement Administrator will calculate the amount of the Participating Class Members’ and Defendant’s portion of payroll withholding taxes. The Settlement Administrator will submit Defendant’s portion of payroll withholding tax calculation to Defendant for additional funding and forward those amounts along with each person’s Individual Settlement Share Class Payment withholdings to the appropriate taxing authorities. 20% of each Participating Class Member’s Individual Class Payment will be allocated to settlement of wage claims (the “Wage Portion”). The Wage Portions are subject to tax withholding and will be reported on an IRS W-2 Form. The 8040% of each Participating Class Member’s Individual Class Payment will be allocated to settlement of claims for [e.g., interest and penalties] with the remaining 40% as penalties (the “Non- Non-Wage Portion”). The Non-Wage 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 taxes owed on their Individual Class Payment.