In this article, the author focuses on settlement allocations involving wages, addressing front pay, back pay, and more. The IRS is looking more closely at the wage versus nonwage dichotomy, and the author sifts through myths and examines incentives to payer, payee, and counsel. Practices vary enormously, and, in the author’s opinion, many take needless risks. He also comments on a district court decision, Josifovich v. Secure Computing Corporation, 2009 U.S. District Lexis 67092 (D.N.J. July 21, 2009), involving a post-settlement fight over the appropriateness of withholding.