High Court Payroll Row Raises Other Employee Tax Concerns

By Vidya Kauri (May 16, 2018, 7:37 PM EDT) -- The latest tax dispute to hit the U.S. Supreme Court dockets may be narrowly limited to the rail industry, but the possibility of an IRS regulation being struck down could open a can of worms on what kinds of employee compensation can be taxed.

The high court agreed Monday to take up a petition from BNSF Railway Co. over whether payroll taxes should be deducted from compensation owed to a former employee for lost wages in connection with a workplace injury.

The row reveals a disconnect between the definitions of taxable compensation in two federal statutes that are supposed to work...

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!


Hello! I'm Law360's automated support bot.

How can I help you today?

For example, you can type:
  • I forgot my password
  • I took a free trial but didn't get a verification email
  • How do I sign up for a newsletter?
Ask a question!