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    tomknu's Avatar
    tomknu Posts: 3, Reputation: 1
    New Member
     
    #1

    Mar 1, 2010, 11:37 AM
    Why would I need to pay self employment tax on employment settlement
    My original question was regarding 1099 misc I can't find any informaiton regarding the rational of paying self employment tax on settlement when I was an employee of this company I found this documentation on a site regarding self employment. Also how can I determine what the award is replacing. Tax laws differ from many other laws surrounding compromise settlements. My WC case in compromise settled wages as well as requesting a resignation when there was a written request for accommodation.

    The discrimination claim was filed because the employer insurance originally denied the WC claim so the employer felt they did not have to address the disability which was diagnosed by dr (depression) and not address accommodating. As well as by requesting resignation they would relieve their responsibility of reasonable accommodation. So the settlement was in regards to the discrimination so what in this case would it be replacing HERE IS INFO ON SELF EMPLOYMENT TAXES. What would merit paying these taxes if I was not self employed and would I now have to pay Med & SS at a 6.2 or higher is what is seem to have been taken on my W2
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
     
    #2

    Mar 2, 2010, 01:41 AM

    Yes, you will report this on schedule C or C-EZ. This is payment received by you when you are not an employee.

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