Lost Wages Portion of Proceeds from Employment Lawsuit
If the former employer issues W-2 for the lost wages portion of the proceeds from an employment lawsuit, do both the former employer and the former employee have to pay the social security tax, aka payroll tax on it?
Lost Wages Portion of Proceeds from Employment Lawsuit
Its handled just like regular wages. The employee pays half and the employee pays half, and it’s reported on form 941 for the quarter in the same way as regular wages.
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