Congratulations! You have somehow managed to convince a very reticent employer and their all-powerful counsel to finally settle that difficult Family and Medical Leave Act (FMLA) case with you. The only thing left to do is to get paid, right? Guess again. Until the parties can agree on how the settlement payment should be reported to the IRS, the settlement will remain in payment purgatory. There can be a "sticking point" in these situations if a plaintiff is paid by W-2, because the defendant is obligated to deduct applicable taxes, withholdings for Social Security and Medicare and its employer tax, whereas a plaintiff paid by Form 1099-MISC is responsible for all of these taxes.