What taxes should be paid on a settlement with a former employer

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What taxes should be paid on a settlement with a former employer

I won a settlement against a former employer for discrimination. The send me a 1099 Misc. for non employee compensation.
Is that correct?
Thanks.

Asked on January 25, 2019 under Employment Labor Law, Florida

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

It's non-wage payment (that is, it's not salary, hourly wages, an annual or performance bonus) so it is appropriate to set you a 1099 misc. and not withhold any money from it. It will essentially be added to your other gross earnings and will be taxed with your other income at years end.


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