Aod-2019-02.pdf

aod-2019-02.pdf
Preview of aod-2019-02.pdf
🔗 Source: irs.gov
📊 Size: 207 KB
📄 Pages: 4 pages
⬇️ Downloads: 37

Summary

The Eighth Circuit held that lump-sum payments made to unionized employees upon ratification of collective bargaining agreements are not taxable compensation under the Railroad Retirement Tax Act (RRTA) because the payments were not made "in the service of the employer." However, the Supreme Court later rejected this premise in BNSF Railway Company v. Loos, holding that the RRTA's definition of "compensation" is equivalent to the FICA's definition of "wages" and encompasses not just pay for active service but also pay for periods of absence, as long as the payment stems from the employer-employee relationship. As a result, the IRS will not follow the Eighth Circuit's holding in Union Pacific, and lump-sum payments made upon ratification of collective bargaining agreements will be considered taxable compensation under the RRTA.

Description

The Eighth Circuit held that lump-sum payments made to unionized employees upon ratification of collective bargaining agreements are not taxable compensation...

Technical Information

  • File Format: PDF
  • File Size: 207 KB
  • Pages: 4
  • Language: EN
  • Total Downloads: 37
  • Last Updated: 2 months ago

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