Legal Question in Tax Law in California
Taxability of Employer Payments on behalf of Accused
My brother-in-law (Vice President of a Corp.) was
accused, along with his employer of sexual
harassment. An EEOC complaint was filed.
Before the hearing began, the President of the
Corp. fired my brother-in-law. In order to avoid a
''Wrongful Termination'' suit, the President (who
was also named in the harassment complaint)
agreed to pay any punitive damages awarded to
the plaintiff on behalf of my brother-in-law. In
addition, the President agreed to pay all of my
brother-in-laws attorney fees and any pertinent
EEOC hearing fees. Question: Are payments
made by President on behalf of my brother-in-law
taxable to my brother-in-law?
2 Answers from Attorneys
Re: Taxability of Employer Payments on behalf of Accused
Thanks for your posting.
The answer to your question is: NO. Only income can be taxed, and although the employer may have a contractual right to sue to recover their costs, the amounts they spend are not INCOME to your brother-in-law.
Thanks again, and if you have any other questions or need more information, please feel free to call me at 1-877-568-2977 (toll free) or email me, and I'll help in any way that I can.
Robert Miller, Attorney at Law
Re: Taxability of Employer Payments on behalf of Accused
Joel Selik, Tax Attorney recently gave a seminar to trial attorneys for Consumer Attorneys of San Diego, and will soon give one for North County Bar Association Personal Injury Section. He is available for consultation.
He states, though a short answer, and without all the facts: fully taxable.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
