FICA Taxes, IRS, Quality Stores

IRS Announces That It Will No Longer Refund FICA Taxes on Severance Payments

Orrick - Employment Law and Litigation on 2/26/2015

The IRS recently announced that severance payments are taxable wages under FICA, and thus employers who seek tax refunds on those payments will be denied. The IRS’s position reflects the United States Supreme Court’s ruling...more

Severance Payments are Taxable under FICA

Sheppard Mullin Richter & Hampton LLP on 3/31/2014

On Tuesday, March 25, 2014, the U.S. Supreme Court ruled in favor of the Internal Revenue Service in a dispute over the payroll tax treatment of certain types of severance compensation....more

Severance Pay As Wages: Business As Usual

Ervin Cohen & Jessup LLP on 3/31/2014

Confirming what most employers have long assumed to be true, this week the U.S. Supreme Court held that severance payments made to terminated employees are “wages” subject to the Federal Insurance Contributions Act (FICA) tax...more

Supreme Court Rules That Severance Payments Are Subject to FICA Taxes

Ballard Spahr LLP on 3/31/2014

The U.S. Supreme Court has unanimously held that payments of supplemental unemployment benefits (SUB payments) are taxable wages subject to FICA tax withholding. The Court’s decision in United States v. Quality Stores, Inc.,...more

Supreme Court Decides in Favor of IRS in Quality Stores: FICA Generally Applies to Severance Payments

McDermott Will & Emery on 3/27/2014

The Supreme Court of the United States has decided in favor of the Internal Revenue Service in United States v. Quality Stores, Inc., holding that severance payments made pursuant to plans that did not tie payments to the...more

The ERISA Litigation Newsletter - February 2014

Proskauer Rose LLP on 2/24/2014

The employee benefits issues to be considered by the U.S. Supreme Court continue to be of great significance to plan sponsors and fiduciaries. This month we review the Court's employee benefit decisions from 2013 and also...more

Severance Payments: To Tax or Not to Tax, that is the Question!

Baker Donelson on 10/17/2013

On October 1, 2013, the U.S. Supreme Court agreed to hear the federal government's appeal of the Sixth Circuit Court of Appeals' decision in United States v. Quality Stores, Inc. (In re Quality Stores, Inc.), 693 F.3d 605...more

The Supreme Court Will Decide Whether FICA Taxes Is Owed On Severance Pay

Stinson - Benefits Notes Blog on 10/11/2013

I blogged about Quality Stores, a case in which the Sixth Circuit Court of Appeals held that severance pay is not subject to FICA (Social Security) taxes if certain requirements are met: The severance payments must be made...more

Federal Appeals Court Holds That Supplemental Unemployment Compensation Benefits Are Not ‘Wages’ Subject To FICA Taxation,...

Troutman Pepper on 4/15/2013

In an important recent decision, United States v. Quality Stores, Inc., et al., Case No. 01-1563, 2012 U.S. App. LEXIS 18820 (6th Cir. Sept. 7, 2012), the U.S. Court of Appeals for the Sixth Circuit held that supplemental...more

Deadline for Filing FICA Tax Refunds is April 15

Sheppard Mullin Richter & Hampton LLP on 4/5/2013

As previously reported, the payment of certain severance benefits may be exempt from FICA taxes. Under the Sixth Circuit’s decision in Quality Stores, severance pay made in connection with an involuntary separation from...more

File for FICA Tax Refunds Before April 15

Sheppard Mullin Richter & Hampton LLP on 2/20/2013

As previously reported, the payment of certain severance benefits may be exempt from FICA taxes. Under the Sixth Circuit’s decision in Quality Stores, severance pay made in connection with an involuntary separation from...more

Sixth Circuit Denies Government Motion for Rehearing in Quality Stores Employment Tax Challenge

BakerHostetler on 2/1/2013

The Sixth Circuit has unanimously and summarily denied a Government request for en banc rehearing of a taxpayer-favorable ruling in United States v. Quality Stores, Inc., 693 F.3d 605 (6th Cir. Sept. 7, 2012)....more

Sixth Circuit Will Not Rehear Quality Stores Decision that Severance Pay in Connection with a Reduction in Force is not Subject to...

Proskauer Rose LLP on 1/21/2013

On September 7, 2012, the Sixth Circuit Court of Appeals held in United States v. Quality Stores, Inc. that severance payments to former employees pursuant to an involuntary reduction in force are not taxable "wages" for...more

FICA Taxes › Internal Revenue Service › Quality Stores