North Carolina.
I filed a discrimination/wrongful termination charge with the Equal Opportunity Employment Commission on June 2008. The case went to mediation and the company wants to settle out of court for $47,000.00 and $7,000.00 which will be back pay and out of pocket expenses and $40,000.00 for emotional distress. They say I will be taxed with a 1099 on $7,000.00. Will I still be taxed on $40,000.00? What are the alternatives, I have not agreed to these conditions yet.
I filed a discrimination/wrongful termination charge with the Equal Opportunity Employment Commission on June 2008. The case went to mediation and the company wants to settle out of court for $47,000.00 and $7,000.00 which will be back pay and out of pocket expenses and $40,000.00 for emotional distress. They say I will be taxed with a 1099 on $7,000.00. Will I still be taxed on $40,000.00? What are the alternatives, I have not agreed to these conditions yet.