For over three decades, structured settlements have been used to resolve personal physical injury claims. Today their advantages are applicable in Employment Litigation as well, such as wrongful discharge situations.
Using lessons learned from structured settlements, the concept of periodic payments can now be utilized for claimants to defer income recognition of taxable employment settlements by accepting periodic payments rather than a lump sum of cash. Reducing the amount received up front results in a lower tax bracket or an alternative minimum tax level. In the summer of 2008 our parent company obtained a private letter ruling confirming tax deferral on benefits following a similar fact pattern. Please download and review the Private Letter Ruling (PLR) and let us know if we can answer any questions.
Payments may be for a guaranteed period, for future lump sums, or for the life of the claimant. Each settlement plan is tailored to meet the individual’s unique financial requirements.
Self-insured corporations, municipalities, governmental organizations, and insurance companies are all eligible to settle an employment claim using a periodic payment settlement. Contact us to find out how EPS Settlements Group can help you take advantage of these opportunities.