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Supreme Court rules injured rail workers’ lost wages taxable

March 4, 2019

Via: Jurist

The US Supreme Court on Monday ruled that a railroad’s payment to an employee for lost wages due to an on-the-job injury is taxable “compensation” under the Railroad Retirement Tax Act (RRTA).

In BNSF Railway Company v. Loos, the justices ruled 7-2 in favor of the Railway Company. BNSF asserted that their payment of lost wages to employee, Michael Loos, were considered taxable, and asked to withhold a portion of the lost wages to cover Loos’ share of the RRTA taxes.

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