Use this button to switch between dark and light mode.

Surprise! Your Wrongful Employment Termination Settlement is Taxable

March 29, 2022 (2 min read)

Taxation happens! Happy to have settled a wrongful termination claim, but then you learn that much of it is subject to tax? The taxability or deductibility of a big award or claim settlement can have a major effect on the financial outcome. The unwanted extra cost of an unexpected tax payment can significantly decrease the perceived value of a settlement offer and push the settling parties further apart.


Related Content

  • Settlement Agreements: Negotiation Techniques (Pro-Employee)
    Typically, in an employment dispute, the defendant’s employer’s attorney will prepare the initial draft of the settlement agreement. Once you have agreed to the monetary terms of settling your client’s claim, you may think you are near the finish line. But negotiation of the final terms of the settlement agreement is often difficult and time consuming..


Practical Guidance Updates
Featuring the latest updates from your Practical Guidance account.   

Experience results today with practical guidance, legal research, and data-driven insights—all in one place.

Experience Lexis+