United States:
California "Waiting Time Penalties" Are Not Wages For Federal Income Tax Purposes
04 May 2016
Proskauer Rose LLP
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Our colleagues over at Proskauer's ERISA
Practice Center Blog have noted that a recent IRS information
letter confirms that "waiting time penalties" paid under
California law are not wages for federal income tax withholding
purposes. Please click here for the full post and please see Chief Counsel Advice Memorandum 201522004 and
IRS Information Letter 2016-0026 for additional
information and guidance on this matter.
California "Waiting Time Penalties" Are Not Wages For
Federal Income Tax Purposes
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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