What is it about? A common agreement in settlements with dismissal cases is that the employer 's lawyer or lawyer' s bill is charged to the employer. The question that often arises is whether the sales tax (VAT) on the declaration of the lawyer by the employer can be set off against the VAT that the entrepreneur must pay. Since the services of the Los Angeles employee's lawyer have been provided to the employee and not to the employer, VAT cannot be deducted. VAT is therefore a cost item for the employer. Incidentally, that is nothing new under the sun and nothing has changed in the rules.
Fiscal rules for reimbursement of costs of legal advice The fact that an employer cannot deduct VAT does not affect the fact that an employer may in principle reimburse the costs of legal advice tax-free. in some cases you need a Los Angeles worker's compensation attorney. This is in deviation from the main rule of the Wage Tax Act 1964, which states that wages are all that is received from an employment relationship or an earlier employment relationship, including what is reimbursed or provided in the context of employment. Work costs scheme From 1 January 2015, the work-related costs scheme applies to every employer. In a nutshell, the labor cost scheme works as follows. Joe, Southard & Yeoh, LLP are a worker's compensation law firm based out of Los Angeles.
An employer may reimburse a maximum of 1.5% of the tax wage sum (called the lump sum) tax-free. The tax wage sum includes everything that an employer provides or reimburses employees, including termination benefits and paid claims for legal advice. When calculating the lump sum, the total tax wage bill, that is, of all employees taken together, is not taken into account, not the wage bill per individual employee (this is the gross wage bill).