St. Louis Settles Lawsuit, Plans $26M Refund for Remote Workers and Employers – What You Need To Know!

St. Louis settled a lawsuit by agreeing to refund earnings taxes for remote workers and reimburse payroll taxes for their employers from 2020 to 2022.

St. Louis Settles Lawsuit Over Unpaid Remote Worker Tax Refunds Amid COVID-19 Pandemic

St. Louis has settled a lawsuit with remote workers who sued over unpaid earnings tax refunds during the COVID-19 pandemic. The agreement requires the city to set up a process for workers to claim refunds for earnings taxes paid in 2020, 2021, and 2022. It also allows employers who paid payroll taxes for remote workers to seek reimbursements.

The settlement follows pressure from the plaintiffs’ legal team, who were preparing to appeal to the Missouri Supreme Court to make the lawsuit a class action. Attorney Mark Milton welcomed the city’s decision to settle noting that city officials recognized their position was unsustainable.

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(photo: KSDK)

St. Louis Settles Tax Dispute, Plans $26M Refund for Remote Workers

Although the original lawsuit focused on earnings tax refunds, the settlement includes provisions for employers affected by payroll tax issues, aligning with another lawsuit involving AT&T. The city has earmarked $26 million from its upcoming budget to cover refunds, despite earlier estimates suggesting annual costs between $25 million and $50 million during the relevant years. Mayor Tishaura Jones will address the long-term financial impact in a forthcoming press conference, highlighting the city’s commitment to resolving fiscal matters equitably, according to the report of Audacy.

St. Louis settled a pandemic-era tax dispute by agreeing to refund taxes paid from 2020 to 2022 by remote workers and their employers. The decision followed legal pressure and concerns about escalating litigation towards a class action. Attorney Mark Milton supported the settlement recognizing the city’s unsustainable position. The agreement also addresses payroll tax issues similar to those in another lawsuit involving AT&T. St. Louis plans to allocate $26 million from its upcoming budget to cover potential annual costs ranging from $25 million to $50 million. Mayor Tishaura Jones will discuss long-term financial plans in an upcoming press conference focusing on transparency and financial responsibility.

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