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How Deductions for Confidential Sexual Harassment Settlements Were Eliminated

Posted on January 9, 2019
Learn more about the changes for sexual harassment settlements.

Nondisclosure agreements (NDA) are notoriously common during workplace sexual harassment settlements. For many decades, your employer could settle a confidential sexual harassment claim and receive a tax deduction. However, a recent tax reform bill forces your employer to choose between using an NDA and receiving a tax deduction. Section 13307 of the Tax Cuts and Jobs Act (TCJA) states that no tax deductions are available for “any settlement related to sexual harassment … Read More

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