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    #1

    UPS W2 lawsuit

    I have some UPS driver employees and they have been bringing in an additional w2 besides the standard issue from the co. The clients have been telling me it was for a lawsuit against the co and they got paid out this last year. The weird thing is that only half of the money they recieved is on the w2 the other half is on a 1099 as misc income. I have just been putting that on line 21 as income. Has anyone encountered this and if so is that what you are doing for the 1099?


    To infinity and beyond!!
    Tags: None
    #2
    Ups

    Superman,

    I have a couple of UPS drivers, but have not seen them, yet. I will call one of them and see if I can get any info for you.

    I'll post again.

    Dennis

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      #3
      1099

      Just got off the phone with my client. He told me his 1099-M shows this amount in box 3. He did not know what to look for on the W-2, so I don't know if it's there or not. I assume his will be the same as your client's.

      Is there a code or an amount on the W-2?

      Dennis

      Comment

        #4
        I work for UPS and this has never been addressed locally. I asked a couple of our drivers about it and they drew a blank. It's possible it is a local issue. If that's the case, call the union and they should be able to fill in the blanks.

        Comment

          #5
          sperate w2

          No this was a sperate w2 with a 1099 on the bottom of the page the driver said it was from a lawsuit regarding missed meals for a few years. It may only be in CA he thought it was nationwide. Maybe some other CA parperes have seen this.

          Comment

            #6
            Ups 1099

            Has anyone heard anymore about this? I've had two this week and am so curious. Are they reimbursing for meals, 1099'ing for money they paid the drivers??

            Let me know, if you've heard more. Thanks.

            Dennis

            Comment

              #7
              I have one driver

              the local fleet manager and the fleet supervisor as clients. None of them have said anything, nor did I see anything different. Of course, as my handle suggests, I'm in NC.

              Comment

                #8
                Josh

                Both of my clients are clueless about this. The W-2 is for the same amount w/taxes taken and then below this is the 1099 for the same amount in box 1. And, there is no set amount for all the drivers, all different amounts to each.

                If you hear something, even if after the 15th, please post it for me.

                Dennis

                Comment

                  #9
                  Settlement Proceeds

                  My comments on this are educated speculation. I have not had a UPS driver as a client, I have not seen the documents in question, and I am not familiar with the case.

                  But I'm gonna shoot my mouth off anyway...

                  This sounds like a wage-and-hour lawsuit settlement. Drivers alleged that they were not getting paid fairly for the hours they actually worked. The reference to "missed meals" might have something to do with an allegation that drivers were required to subtract a certain amount of time from the hours they reported, in order to account for a designated meal break of 30 minutes or more, even if they did not actually take the meal break. Or perhaps they argued that the meal break should have been paid, because they were on their route and were required to eat in the truck. Or something like that.

                  The settlement probably involved an agreement that the drivers in the class would be paid their regular hourly rate for a specific number of hours, plus the same amount of money as additional damages.

                  My educated guess may be oversimplified, but here's my theory:

                  Half the money the driver got was actual compensation for time that they worked but never got paid for. That amount is reflected on Form W-2. It's back wages, and it's subject to FICA, just like any other wages.

                  The other half of the money the driver got was either punitive damages or compensatory damages. Either way, the other half was not compensation for work the driver actually performed. Rather, it was compensation for the fact that... well, for the fact that UPS screwed the driver by shorting his paycheck in the first place.

                  That money is not wages and it's not compensation in the traditional sense. It's other income.

                  Box 3 of Form 1099-MISC generally belongs on line 21. It is not subject to self-employment tax.
                  Last edited by Koss; 04-10-2008, 09:01 PM.
                  Burton M. Koss
                  koss@usakoss.net

                  ____________________________________
                  The map is not the territory...
                  and the instruction book is not the process.

                  Comment

                    #10
                    Burton

                    Thanks for taking the time to explain this. And, you were not shooting your mouth off! I will pose your scenario to my fellow and see if this rings a bell to him.

                    Line 21 is where the rest of it went.

                    Thanks, again.

                    Dennis

                    Comment

                      #11
                      Exactly

                      That is exactly what happened I have a few UPS drivers and they told me the story that if they did not work through their lunch breaks there would be no way that they could finish on time. Some guy in CA filed the suit and it became a class action maybe just for CA but he thought nationwide. Anyways I have seen some pretty heafty checks come in so when word gets around there will probly be more to come I am sure.

                      Only a few days left and I am still recieving returns the more the better I say and so does my wife. New one on the way so eventually will be able to hand over the reigns in twenty years or so!!!

                      Have a great rest of the season.

                      Comment

                        #12
                        Congratulations!

                        Originally posted by Girard Van De Lay View Post
                        That is exactly what happened I have a few UPS drivers and they told me the story that if they did not work through their lunch breaks there would be no way that they could finish on time. Some guy in CA filed the suit and it became a class action maybe just for CA but he thought nationwide. Anyways I have seen some pretty heafty checks come in so when word gets around there will probly be more to come I am sure.

                        Only a few days left and I am still recieving returns the more the better I say and so does my wife. New one on the way so eventually will be able to hand over the reigns in twenty years or so!!!

                        Have a great rest of the season.
                        My daughter is 6 1/2 and I'm aleady grooming her to take my chair in about 15-20 years.

                        Comment

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