St. Louis has settled a lawsuit with remote workers over denied tax refunds for 2020-2022.
St. Louis Settles Lawsuit Over Denied Remote Workers’ Tax Refunds
In a significant legal resolution, St. Louis has settled with remote workers who filed a lawsuit over denied earnings tax refunds. Eligible workers for tax years 2020-2022 can now reclaim previously paid taxes, and employers can also seek refunds for payroll taxes paid on remote staff.
Attorney Mark Milton representing the workers praised the settlement after an appellate decision suggesting the city recognized the weakness of its stance. This marks a notable shift acknowledging the validity of remote workers’ claims and setting a clear process for tax refunds.
The lawsuit focused on earnings tax, though broader legal issues included challenges like AT&T’s disputes over payroll taxes. St. Louis opted for transparency conceding its previous positions to resolve various tax disputes comprehensively, according to the report of Audacy.
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(photo: St. Louis Post-Dispatch)
Allocates $26 Million for Remote Workers’ Tax Refunds Amid Fiscal Adjustment Plans
City officials plan to allocate $26 million from the upcoming budget for refunds, contrasting earlier estimates of annual costs ranging up to $50 million. Mayor Tishaura Jones will address the settlement’s long-term financial implications at a press conference emphasizing fiscal prudence amidst adjustments.
The settlement underscores St. Louis’s commitment to fair tax policies in the remote work era. As the city prepares to implement refunds, stakeholders await details on how this agreement will shape future tax policies under Mayor Jones’s leadership.
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