Tag: Pay

Do My Severance Pay, PTO & Vacation Pay Count As Earned Income For Social Security?

Today’s column addresses questions about whether — and when — severance and paid time off count as wages under Social Security’s earnings test, some potential effects of filing early and some requirements for divorced spousal benefits to be paid. Larry Kotlikoff is a Professor of Economics at Boston University and the founder and president of Economic Security Planning, Inc, which markets Maximize My Social Security and MaxiFi Planner.

See more Ask Larry answers here.

Have Social Security questions of your own you’d like answered? Ask Larry about Social Security here.


Do My Severance Pay, PTO & Vacation Pay Count As Earned Income For Social Security?

Hi Larry, I started receiving my Social Security widow’s benefits January 2019. I just received a letter stating that they cannot pay my benefits from January 2019 through April 2019 because I was working. I was not working. I was on temporary disability collecting New Jersey short term disability and disability through the company that I worked for. I was given severance compensation, paid PTO and vacation pay. Can these payments show as earned income?

When I applied to Social Security, I asked if can I receive temporary disability and widow’s benefits and was told yes and now they are looking for me to return $10k. Thanks, Amy

Hi Amy, Yes. Any compensation you received for which you received a W-2 form would likely be considered to be earned income for purposes of the Social Security earnings test, but if you last worked in 2018 then anything you were paid in 2019 could likely be excluded from counting toward the 2019 earnings test. Social Security refers to that type of compensation as a special wage payment (SWP), and they use a specific form (SSA-131) to document that type of payment.

Based on your description, it sounds like you can probably get Social Security to remove the overpayment that you’ve been notified of by having your former employer complete a form SSA-131 and submitting in to Social Security. It might work best to start out by calling Social Security to explain the circumstances, though. Best, Larry



Will My Wife Receive More If She Files For Spousal Benefits?

Hi Larry, My wife and I both will retire in 2022. I will be 62 and she will be 63. Social Security shows her at $750 a month and me at $1,950 a month at that time. Would she receive more if she filed for spousal benefits? Thanks, Tomás

Hi Tomás, Your wife can’t file for spousal benefits without being required to file for her own benefits at the same time. If you’re drawing your retirement benefits and if your primary insurance amount (PIA), which is equal to your full retirement age (FRA) retirement benefit amount, is more than twice as much as your wife’s PIA, she would then be paid her own benefit plus a partial, or excess, spousal benefit. If she starts drawing prior to full retirement age (FRA), each benefit rate would

Continue reading

NYC hotel owners to pay more than $500 million to employees displaced by COVID-19: report

New York City hotel owners will have to pay more than $500 million to employees displaced by the coronavirus pandemic following a recent arbitration ruling, the Wall Street Journal reported on Wednesday.



a close up of a busy city street: NYC hotel owners to pay more than $500 million to employees displaced by COVID-19: report


© Getty Images
NYC hotel owners to pay more than $500 million to employees displaced by COVID-19: report

Sources familiar with the ruling tell the newspaper that the severance amount is likely the largest ever hotel union group payout in the country, a boon for employees but another hit for owners in an unprecedentedly difficult year for the hotel industry.

Travel of all kinds has come to a near standstill as tourists and business travelers seek to avoid COVID-19 risks.

“Continuing health care in the context of a pandemic is a critical thing. These severance payments are a necessity for our hotel workers after the federal supplements ended last summer,” said Rich Maroko, president of the Hotel Trades Council union.

There are more than 200 union-operated hotels in New York, the Journal reports, and more than 75 property owners will be responsible for the half-billion-dollar payment.

Some owners have already made their payments to the Hotel Trades Council, according to the Journal, while others plan on paying through installments. At least one owner is challenging the ruling in court.

The newspaper reports that hotel owners say they will have to shut down operations throughout the city. Even if they reopen, businesses may not recover from this extreme setback for many years to come.

Many of the city’s largest hotels, including the Hilton Times Square and the Roosevelt Hotel have announced that they will be shutting down permanently. According to hotel owners, nearly 25,000 rooms, 20 percent of those in New York, may never reopen.

According to government data, New York City is currently experiencing a slight rise cases, though nowhere near the numbers seen in the spring and summer.

Continue Reading

Source Article

Continue reading

New York Hotel Owners to Pay $500 Million to Pandemic-Hit Workers

New York City hotel owners have to pay more than $500 million to employees displaced by Covid-19, according to people familiar with an arbitrator’s recent ruling, a victory for tens of thousands of unemployed workers and a fresh setback for cash-strapped property owners.

The ruling represents the largest hotel-employee payout ever awarded in New York City, hotel owners and union representatives said. While the final amount of severance pay depends on a few factors, it is likely to be the biggest on record for any hotel-union group in the country, these people said.

The magnitude of the payments is heightening tensions between lodging owners and the hotel union as Covid-19 ravages New York’s hospitality business.

Corporate travel across the U.S. has collapsed, and after years of record tourism in New York City, visitors have dwindled. Broadway theaters are closed, and other attractions like museums and restaurants are operating at partial capacity.

Hotel owners say they have had to shut down operations throughout New York City, and even after they reopen, it might be years before their hotels can turn a profit. A number of New York hotel owners received federal assistance through the Paycheck Protection Program that helped them survive the early weeks of the pandemic, and some owners used part of those funds to support employees.

Source Article

Continue reading

UPDATE 1-South African court rules insurer Santam should pay hotel group’s virus-related claim

(Adds details, comments)

JOHANNESBURG, Nov 17 (Reuters) – A South African court on Tuesday ruled that insurer Santam should pay coronavirus-related claims made by hotel group Ma-Afrika, which it had rejected, according to a written judgement.

Globally, firms like Ma-Afrika, forced to close under coronavirus restrictions, have been fighting the rejection of claims made under business interruption policies. In South Africa, insurers say these policies did not apply to government lockdowns.

Tuesday’s judgement however, following a case brought by the small hotel group and a related restaurant, ordered Santam to pay out on the group’s claims made under an extension of its business interruption policy.

“The applicants have established that they have an existing contractual right to indemnity under the infectious diseases clause to the policies,” the judgement stated.

The judgement said the combined total of business interruption cover for loss of revenue under four policies held by Ma-Afrika’s hotels, and another policy held by the restaurant, stood at 122.43 million rand ($7.94 million).

A spokeswoman for Santam, the country’s largest non-life insurer that has previously indicated it will appeal any decision against it, said the insurer would comment on the news on Wednesday morning.

Other insurers, under pressure from regulators and with their reputations bruised by the dispute, have also been watching the case. It is seen as providing some legal certainty around their obligations in relation to the policies.

Ryan Woolley, CEO of Insurance Claims Africa, a loss adjuster representing over 750 affected firms in South Africa including Ma-Afrika, said the case provided the certainty required to finalise all such disputed claims.

“We believe it is now time for the sector to step up and display the ethical leadership that has been missing from their response to this crisis thus far,” he said in a statement.

Andre Pieterse, chairman and CEO of Ma-Afrika, said the decision would greatly assist his firm and others in his sector to weather the pandemic, and he hoped it bought an end to the litigation.

He also thanked Santam for a payment received under a 1 billion rand initiative the insurer offered to affected clients. The payments were interim relief intended to tide them over while legal battles played out. ($1 = 15.4255 rand) (Reporting by Emma Rumney Editing by Nqobile Dludla and Alexandra Hudson)

Source Article

Continue reading

Would you pay $20,000 to live in a hotel room for a month? Some guests are.

Beachfront cabanas, a heated pool, an empty fitness center, room service — escaping to a hotel sounds pretty good on even the most mundane of days. But what about living in one for a month?





As people have more flexibility to work away from the office, longer periods of travel are becoming the norm to optimize potentially risky flights and complicated covid-19 tests. But nightly-rate hotel stays are usually too pricey to be friendly for long-term visits, often making vacation rentals a better option.

But since the pandemic has slashed hotel business, some hotels and resorts are adjusting by offering month-long stays that could be less expensive than your rent or mortgage payment. Others are demanding some eye-popping prices.

I stayed at 3 hotels during covid-19. The best option surprised me.

On the deal end of monthly stays, the Waldo Emerson Inn in Kennebunkport, Maine, is renting out some of their rooms on a monthly basis for less than 25 percent of its normal rate. The average rate in the offseason is $250 a night, or $7,500 a month. “Currently I’m renting two of my rooms for $1,800 a month” each, says innkeeper Hana Pevny. She notes that the demand for monthly stays at the bed-and-breakfast has been “very high” because of the coronavirus.

But would you pay $20,000 a month to stay in a hotel suite? The luxe Brazilian Court Hotel in Palm Beach, Fla., is betting on it with its “Key to Paradise” extended-stay package that starts at $24,000 per month for a one-bedroom suite available December through April. Two-, three-, and four-bedroom suites are available monthly for a rate of $40,000. The hotel does not offer any kitchenettes in its rooms but says it has added countertop smart-ovens to suites and has turned mini bars into fridges.

The Brazilian Court has sold out of their multi-bedroom suites over many dates during the snowbird season from December to April, which is when people travel to warmer areas for the colder months. The property says it has booked more than 25 stays of 30 nights or longer.

America’s luxury hotels on the brink

And it is not the only property making changes to its rooms as an investment for long-term stays. South Oregon’s Ashland Hills Hotel & Suites remodeled its suites in the early days of the pandemic to accommodate kitchens, and it says the response has been “shocking.” Kitchen suites are $1,900 per month, and rooms or standard suites are $1,400 to $1,600 per month.

“With all that’s happened in 2020, Ashland Hills Hotel & Suites saw the writing on the wall for people needing extended stays,” spokesperson Katie Schoen said. The added kitchens, she says, “opened the floodgates.” Pre-pandemic, Ashland Hills had six extended-stay reservations on the books. As of November, it had more than 70 scheduled.

Some of the most economical long-term stays are at properties with kitchenette units or stand-alone cabins. Angels Rest on Resurrection Bay, a cabin ground near Kenai Fjords National Park in

Continue reading

Trane Misled Arbitrator Over Vacation Pay, Union Says

Law360 (November 10, 2020, 7:49 PM EST) — A United Auto Workers local representing laid off Trane employees alleges the company cheated the workers out of vacation pay, arguing that an Arkansas federal court should vacate an arbitration award because the way Trane classified vacation pay was “misleading.”

In a Monday motion, the UAW Local 716 asked the judge to vacate and remand to the arbitrator who decided the merits award for vacation pay after a 2017 plant closure. The union claimed the award meant that nearly all 200 laid off workers would get vacation pay for that year, but Trane only paid three workers because it said the…

Stay ahead of the curve

In the legal profession, information is the key to success. You have to know what’s happening with clients, competitors, practice areas, and industries. Law360 provides the intelligence you need to remain an expert and beat the competition.

  • Access to case data within articles (numbers, filings, courts, nature of suit, and more.)
  • Access to attached documents such as briefs, petitions, complaints, decisions, motions, etc.
  • Create custom alerts for specific article and case topics and so much more!

TRY LAW360 FREE FOR SEVEN DAYS

Source Article

Continue reading

Jersey City to pay $1 million to settle lawsuit by Downtown hotel developer

Jersey City has agreed to pay a Downtown hotel developer more than $1 million to settle a lawsuit over loan interest payments that were paid to the city.

The settlement, which is expected to be approved at Thursday’s City Council meeting, would refund Cal-Harbor South Pier Urban Renewal Associates LCC the amount it overpaid in interest payments on an $8 million loan it received 20 years ago to build the Hyatt Regency hotel on Exchange Place and repair and develop an adjacent pier.

The loan was issued by the city under a federal Housing and Urban Development program.

The terms of the loan called for the developer to pay the city the amount in interest that HUD was charging the city. In 2011, the city refinanced the HUD loan and lowered the interest to be paid, but continued to bill the developer the initial interest charge. The developer only became aware that Jersey City had refinanced the loan in September 2016, when the loan was repaid in full.

When contacted by the Cal-Harbor South Pier Urban Renewal Associates regarding reimbursement, Jersey City officials contended that the city did not have to pass along the lower interest rate because it had refinanced the loan.

When Jersey City refused to refund the difference in the interest payments, which amounted to $1,038,297.91, and denied almost all of the developer’s Open Public Records Act requests, Cal-Harbor South Pier filed its lawsuit in September 2018.

In March, Hudson County Superior Court Judge Mary Costello entered summary judgment in favor of the developer on the issue of liability and determined that a trial as to the amount of money to pay to the plaintiff be conducted.

“Accordingly, corporation counsel has recommended a settlement to pay the plaintiff the total sum of $1,038,303.00 to avoid the risks associated with a trial,” the proposed resolution says.

Jersey City officials declined to comment on the settlement, citing pending litigation. Richard Rudin of the Weiner Law Group, which represents Cal-Harbor South Pier Urban Renewal, could not immediately be reached for comment.

Source Article

Continue reading

Do I have to report vacation pay to unemployment?

Q. I was furloughed in March due to COVID-19, then I was laid off. I will be paid three weeks of vacation pay. Do I need to report it to unemployment and how will it affect my claim?

— Still working

A. We’re sorry to hear about your job loss.

The N.J. Administration Code, Section 12:17-8.10, provides information regarding unemployment benefits.

It states that the receipt of your vacation pay in a lump sum will not prevent you from filing for unemployment, said Claudia Mott, a certified financial planner with Epona Financial Solutions in Basking Ridge.

She cited the state’s Department of Labor, which says there are a number of payments that will not reduce the amount of unemployment you receive.

“These include severance payments, bonuses, vacation, sick or holiday pay, social security benefits or pension payments from prior employers,” she said. “If you were to receive pay after you stopped working — known as payments in lieu of notice — an application for benefits could not be filed until you were in receipt of the last payment, but these payments would not reduce the benefit you were entitled to.”

At the time you certify for weekly benefits, Question 5 will ask if you received vacation pay during the time period and the answer will be “Yes,” she said.

The amount of vacation pay you received will need to be input in Question 7, she said.

Email your questions to [email protected].

Karin Price Mueller writes the Bamboozled column for NJ Advance Media and is the founder of NJMoneyHelp.com. Follow NJMoneyHelp on Twitter @NJMoneyHelp. Find NJMoneyHelp on Facebook. Sign up for NJMoneyHelp.com’s weekly e-newsletter.

Source Article

Continue reading

Trump says report that he failed to pay $287M debt tied to failing hotel shows he’s a “smart guy”

Donald Trump; Chicago Trump International Tower
Donald Trump; Chicago Trump International Tower

Donald Trump | Chicago Trump International Hotel and Tower Photo illustration by Salon/Getty Images

This article originally appeared here on Salon.com

President Donald Trump had $287 million in debt forgiven by his lenders after failing to repay loans tied to his Chicago hotel and other projects, according to a new report.

Trump’s federal income tax returns obtained by The News Times showed that most of the debt was tied to Trump International Hotel & Tower — “another disappointment in a portfolio filled with them.”

Lenders gave Trump years of extra time to repay the debt, and Deutsche Bank even loaned him $99 million — more than previously known — to pay off his $99 million debt to another division of the bank, according to The Times. But Trump still did not repay the debt, and lenders ultimately forgave much of what he owed.

The New York Attorney General’s Office is now investigating the debt forgiveness as part of a larger probe into Trump’s company, according to the report. The IRS considers canceled debts as income, but Trump, who paid no federal income tax for years, appears to have paid no taxes on the funds.

Related Articles

Alan Garten, the Trump Organization’s chief legal officer, denied any impropriety.

“These were all arm’s length transactions that were voluntarily entered into between sophisticated parties many years ago in the aftermath of the 2008 global financial crisis and the resulting collapse of the real estate markets,” he told the outlet.

But Trump publicly insisted that he had made a “great deal” with his lenders in order to avoid having to cover his hotel’s losses.

“I was able to make an appropriately great deal with the numerous lenders on a large and very beautiful tower” he tweeted. “Doesn’t that make me a smart guy rather than a bad guy?”

When Trump set out to build the tower in 2001, he arranged for two of his LLCs to borrow more than $700 million for the project, according to The Times. Most of the money came from Deutsche Bank, which was one of the few lenders willing to do business with Trump after a series of bankruptcies and defaults.

The bank agreed to lend the LLC $640 million after Trump said that his daughter Ivanka would be in charge of the project, according to the outlet. Trump personally guaranteed $40 million of the loan.

Another firm, a hedge fund called the Fortress Investment Group, agreed to loan Trump an additional $130 million, which he would pay back once the first loan was repaid. Lenders could seize the building if Trump defaulted under the terms of the agreement, according to the report.

Deutsche later sold off parts of the loans to overseas banks, while Fortress sold off parts of the loans to other equity and hedge funds, including Dune Capital Management, which was then run by now-Treasury Secretary Steven Mnuchin.

Trump was projected to earn income from the

Continue reading

RedAwning and Affirm Partner for Buy Now Pay Later Vacation Rentals

35,000 North American Vacation Rental Properties Now Eligible for Easy Payment Plans

Emeryville, CA –News Direct– RedAwning

RedAwning, the leading hospitality platform for short term rentals, and Affirm, the better way to buy, today announced a new partnership to enable guests to book a vacation rental now and pay later, even after staying. Affirm offers flexible and affordable payment plans so that guests can rent their dream home at their dream destination, and not have to worry about paying for their trip all at once. RedAwning’s property collection, covering every major vacation destination in North America, represents the largest collection of vacation rental properties ever available on a pay over time basis. Property owners and managers participating in the RedAwning Network are already participating in this new program automatically with no action required.

“We know vacation rental stays can be a large purchase for many travelers, so we are excited to offer this industry-first approach,” said Tim Choate, Founder & CEO of RedAwning.com. “Demand for vacation rental travel is increasing and our addition of a pay over time option enables even more guests to travel, rent a nicer home, or take a longer trip. This new offering further expands on our industry leadership for property owners and managers too.” RedAwning participating property owners and managers generate more revenue for less work, with their properties presented everywhere guests shop for travel online.

Affirm adds to RedAwning’s long list of exclusive, industry leading benefits for property owners and managers to help them generate more revenue with less work. These include free professional photography with Meero, pricing optimization, distribution everywhere guests shop for travel, Amazon Prime Now delivery mapping, a mobile app, a web portal, 24/7 Reservations and Guest Services, payment processing with Stripe, Amazon Smart Concierge, and much more.

To learn more about RedAwning’s industry-leading marketing, reservations, and hospitality platform, just visit www.redawning.com/list.

Financing subject to eligibility. Affirm loans are made by Cross River Bank, Member FDIC.

###ENDS###

About RedAwning

RedAwning is the leading platform for short term rentals. RedAwning presents the world’s largest collection of vacation properties to guests wherever they shop for travel. With over 35,000 properties represented on behalf of thousands of property owners and managers, RedAwning covers virtually every leisure destination in North America, and includes a comprehensive layer of services and support with every stay. RedAwning is the largest single U.S. supplier to every major travel website, including Booking.com, Expedia, HomeAway/VRBO, Airbnb, and the new Google Travel. RedAwning also operates exclusive vacation property booking websites, including RedAwning.com for travelers, and TravelPro Rentals, which enables 20,000 travel agents to book vacation properties. RedAwning has been a leading innovator in the vacation rental industry since 2010, with a mission to redefine the customer journey for guests, hosts and property managers alike, and to drive new approaches that make the booking and staying experience at short term rental properties more consistent, easier, safer and better for all. To browse and book the RedAwning Collection, visit www.redawning.com.

Contact Details

Continue reading