William A and Ann M. Jacobs - Page 5




                                        - 5 -                                         
                actions, causes of action, claims, demands,                           
                declaratory judgment, damages, back wages, overtime                   
                compensation, expenses, compensation, attorneys fees,                 
                interest, liquidated damages, costs, and all                          
                consequential damage on account of or in any way                      
                arising out of any and all known and unknown economic                 
                losses or damages compensable under the Fair Labor                    
                Standards Act resulting from or which may result from                 
                my employment with the State of Kansas or any agency                  
                of the State of Kansas from January 1, 1987 through                   
                August 31, 1994.                                                      
                On August 31, 1994, the U.S. District Court for the                   
          District of Kansas entered a Journal Entry of Dismissal With                
          Prejudice and approved the settlement agreement.  Plaintiffs                
          received the settlement payments in two checks, one                         
          representing the unpaid overtime compensation and the other                 
          representing the liquidated damages portion of the settlement.              
          The portion allocated to back wages had all applicable taxes                
          and employee contributions withheld, and the portion allocated              
          to liquidated damages was paid in full to the employees.  The               
          release provided that the liquidated damages portion of the                 
          settlement payment would be reported to the Internal Revenue                
          Service on a Form 1099-MISC.                                                
                The total amount due to Jacobs by the State of Kansas was             
          $96,134.  The State issued him a W-2 in the amount of $48,067,              
          withheld income and FICA taxes on that amount, and paid the                 
          balance of the $48,067 to Jacobs, which he then reported on his             
          1994 Federal income tax return as income.  The State of Kansas              
          also issued him a Form 1099-MISC in the amount of $48,067 and               






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Last modified: May 25, 2011