FICA Taxes Income Taxes

Federal Insurance Contribution Act (FICA) Taxes are United States federal payroll taxes levied to fund the Social Security and Medicare system. FICA Taxes burdens are divided between employers and employees and... more +
Federal Insurance Contribution Act (FICA) Taxes are United States federal payroll taxes levied to fund the Social Security and Medicare system. FICA Taxes burdens are divided between employers and employees and are currently set at 12.4% for Social Security and 2.9% for Medicare. less -
News & Analysis as of

Is There Quality to the Argument That Severance Payments Are Not Taxable "Wages"? – Supreme Court Holds That Severance Payments...

Earlier this week, on March 25, 2014, the U.S. Supreme Court handed down a highly publicized decision in the case of United States v. Quality Stores. In Quality Stores, the Court unanimously held that the severance payments...more

IRS Issues Final Regulations on Substantial Risks of Forfeiture under Code Section 83

On February 25, 2014, the Treasury Department issued final regulations identifying the circumstances in which a substantial risk of forfeiture would exist under Section 83 of the Internal Revenue Code (the “Code”)....more

Severance Payments Are Taxable Wages Under FICA

The U.S. Supreme Court ruled on March 25, 2014, that severance payments made to employees terminated against their will are taxable wages under the Federal Insurance Contributions Act (FICA)....more

Supreme Court Rules that Severance Payments Are Taxable Under FICA

I have to admit, when I read the news that the Supreme Court had ruled earlier this week that severance payments are “wages” subject to payroll taxes, I thought I was on crazy pills: Didn’t we already know that? But,...more

US Supreme Court Rules Severance Pay Subject to FICA Taxes

This week, the U.S. Supreme Court confirmed that severance pay is subject to FICA tax. There had been uncertainty about whether FICA taxes were due on severance payments following disparate circuit court rulings in...more

SCOTUS: Severance payments are taxable

In the words of noted American statesman Benjamin Franklin, “in this world nothing can be said to be certain, except death and taxes.” Given Franklin’s thoughts, yesterday’s decision by the U.S. Supreme Court in the case of...more

High Court Rules Some Severance Payments Are Taxable

Yesterday, the Supreme Court of the United States held that severance payments are taxable under the Federal Insurance Contributions Act (FICA) when made to employees whose employment is involuntarily terminated. The Court...more

Be Sure to File a Protective Claim for FICA Taxes

The Supreme Court has agreed to review the Sixth Circuit Court of Appeals decision in United States v. Quality Stores which held that severance payments to involuntarily terminated employees were supplemental unemployment...more

Court Continues A Fairly Busy Term

Perhaps coincidence, perhaps not, but on "Cyber Monday" the U.S. Supreme Court refused to "click yes" to consider two cases contesting the constitutionality of click-through-nexus when, as discussed further below, it denied...more

Deadline Looms for Quality Stores FICA Refund Claims for Severance Payments

The Supreme Court of the United States recently heard arguments in its review of the U.S. Court of Appeals for the Sixth Circuit’s Quality Stores decision. At issue in Quality Stores is whether certain severance payments...more

Important 2014 Tax Developments

The list is not intended to be exhaustive. - Income: IRS rules that incentives to health care professionals and hospitals for using electronic records are income to those receiving the...more

Restaurant Industry Newsletter - January 2014

Tax Ruling Impacts the Use of Mandatory Service Charges - Executive Summary: Beginning on January 1, 2014, "mandatory gratuities" or service charges are no longer considered "tips" by the Internal Revenue Service, and...more

IRS Guidance on Employment and Income Tax Refunds on Same-Sex Spouse Benefits

Employers extending benefit coverage to employees’ same-sex spouses and partners should review their payroll procedures to ensure that such coverages are properly taxed for federal income and FICA tax purposes. Employers...more

Additional Post-Windsor Guidance – IRS Releases Optional Streamlined Procedures for Employers to Make Claims for Refunds or...

Continuing its implementation of the United States Supreme Court decision in U.S. v. Windsor, the Internal Revenue Service (IRS) recently issued Notice 2013-61, which provides guidance for employers to make claims for refunds...more

Employment Tax Refunds Now Available to Same-Sex Married Couples and Employers

In a notice issued this week (Notice 2013-61), the IRS established special procedures for employees with same-sex spouses and their employers to correct overpayments of income and FICA taxes attributable to the employees’...more

IRS Issues Notice on Special Tax Adjustment Procedures for Same-Sex Marriages

Notice 2013-61 provides alternative administrative procedures for reporting income and FICA tax adjustments in response to the Windsor decision and Revenue Ruling 2013-17. On September 24, the U.S. Department of the...more

What DOMA’s Demise Means for New York Employers and Benefit Plan Sponsors

On June 26, 2013, in United States v. Windsor, 133 S. Ct. 2675 (2013), the United States Supreme Court ruled that Section 3 of the Defense of Marriage Act of 1996 (“DOMA”) violated the Fifth Amendment’s equal protection...more

This Time The Employer Is Responsible For The Withholding Error

I recently blogged here about a situation involving Verizon withholding US taxes from payments to former employees who never lived or worked in the U.S....more

Avoiding Double Payroll Tax With Your Asset Acquisition

When it comes to taxes, you would probably – and rightfully – guess that the majority the United States government collects are income taxes. ...more

How Does The Supreme Court’s DOMA Decision Impact Employers?

The U. S. Supreme Court has declared unconstitutional a portion of the Defense of Marriage Act (DOMA), which had established a federal definition of marriage as a legal union only between one man and one woman....more

Married Same-Sex Couples Should File Protective Claims For Tax Refunds Now

When the Supreme Court ultimately decides United States v. Windsor, it could strike down the portion of the Defense of Marriage Act (DOMA) that prohibits married same-sex couples from receiving the federal benefits provided...more

High Net Worth Family Tax Report, Vol. 8, No. 1 - January 2013

Table of Contents: Remember to file your gift tax return and other follow-up related to 2012 gifts; Review estate plans in light of $5 million exemption becoming permanent; Annual exclusion amount for gifts increased for...more

Congress Approves The American Taxpayer Relief Act Of 2012, Preventing "Fiscal Cliff"

After much contention,Congress passed the American Taxpayer Relief Act of 2012, and President Obama signed the legislation on January 2, 2013. The Act avoids automatic sunset provisions that were scheduled to take effect...more

American Taxpayer Relief Act Affects Mass Transit Benefits and Other Employee Benefits

On January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012 ("ATRA") into law. ATRA, adopted as an alternative to stepping over the "fiscal cliff," preserves most of the Bush-era tax cuts and...more

Legal Alert: Correcting 2012 Withholding Errors

One of the changes made by the American Taxpayer Relief Act ("ATRA") was to restore the $240 monthly limit on employer-provided transit passes or commuting transportation, which had reverted to $125 as of January 1, 2012. ...more

27 Results
|
View per page
Page: of 2