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In-House Interrogatory

Asked: Our weekly question to the In-House community

The National Labor Relations Board is looking at the intricacies of back pay and taxes in the next couple months.

The board is asking whether an employer is responsible for paying taxes on back pay owed to employees in a case where the company was found to have violated fair labor practices when it fired employees.

The board asked for briefs in light of a decision it issued Tuesday dealing with a Chicago charter bus company. An administrative law judge found the company, Latino Express, violated fair labor practices. The judge ruled the company illegally fired two employees during a union organizing campaign.

While the board agreed with the judge, it is still considering two questions pertaining to the case and those interested can submit briefs on the matter to the board before October 1. Briefs can be uploaded here. The case number is 13-CA-046528.

The board asks if it should give documentation to the Social Security Administration to ensure back pay is allocated to the right calendar quarters. It also asks if it should require the employers to pay federal and state income taxes that are owed because they received payment in a lump sum.

So, here’s our question for you:

Should the employer have to pay taxes on the lump-sum payments?

Leave a comment below or email me.

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