FICA Taxes, 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

Supreme Court Confirms FICA Taxes Must be Withheld from Severance Payments

Fenwick & West LLP on 4/23/2014

Finding severance payments to be a form of “remuneration for employment,” the United States Supreme Court in United States v. Quality Stores, Inc. held that such payments are taxable wages – and thus subject to withholding –...more

No Refunds: Supreme Court Settles Circuit Split over Severance Payment Taxation

Baker Donelson on 4/17/2014

In its ruling on United States v. Quality Stores, Inc., No. 12-1408 (U.S. Mar. 25, 2014), the United States Supreme Court put to rest a decade-old battle over whether severance payments made to employees are taxable as wages...more

U.S. Supreme Court’s Severance Ruling Impacts Future Unemployment Benefits

Morgan Lewis on 4/11/2014

The decision in Quality Stores not only kills FICA tax refunds for millions of unemployed workers, but it also requires proactive employer actions to maximize future employer and state unemployment benefit payments to...more

US v. Quality Stores, Inc.: Supreme Courts Finds Severance Payments Taxable Wages Under FICA

Sheppard Mullin Richter & Hampton LLP on 4/10/2014

In an 8-0 decision issued March 25, 2014 in United States v. Quality Stores, Inc., the Supreme Court held that severance payments made to employees who are involuntarily terminated are taxable wages for the purposes of...more

Employee Benefits: U.S. Supreme Court Upholds FICA Tax On Severance

Bond Schoeneck & King PLLC on 4/8/2014

In our February 2014 Information Memo, we suggested that an employer that had paid out severance benefits in 2010 and later years, and paid FICA taxes on such benefits, consider filing protective refund claims based upon a...more

Supreme Court Finds Severance Payments Subject to FICA Withholding

Parker Poe Adams & Bernstein LLP on 4/8/2014

On Tuesday, the U.S. Supreme Court unanimously held that employer severance payments are subject to payroll withholding of FICA taxes, as well as employer contributions on the amounts paid. U.S. v. Quality Stores, Inc....more

U.S. Supreme Court Rules Severance Payments Can Be Taxed

Tucker Arensberg, P.C. on 4/4/2014

It’s a common scenario for many employers. An employee who is terminated by the employer is offered a severance package. The employee would prefer that the severance payments are made under a 1099 (and therefore not subject...more

Supreme Court Clarifies That Severance Payments Are Taxable

McNees Wallace & Nurick LLC on 4/1/2014

On Tuesday, the U.S. Supreme Court ruled unanimously (Justice Kagan recused herself) in United States v. Quality Stores, Inc., Case No. 12-1408 that severance payments made to employees who were involuntarily terminated are...more

Supreme Court Finds Severance Payments are Subject to FICA

Proskauer - Employee Benefits & Executive... on 4/1/2014

On March 25, 2014, in a decision highly anticipated by employers, the U.S. Supreme Court held unanimously that certain severance payments paid to employees who were involuntarily terminated were taxable wages for purposes of...more

Supreme Court Decides Severance Not Exempt From FICA

FordHarrison on 4/1/2014

Executive Summary: On March 25, 2014, the United States Supreme Court unanimously held that certain severance payments (described as "supplemental unemployment compensation benefits" or "SUBs") constituted taxable wages for...more

IRS Wins One At Supreme Court: Severance Pay Is Subject To FICA Tax

Stinson - Benefits Notes Blog on 4/1/2014

I blogged about the Quality Stores decision which at the district court and court of appeals levels held that certain severance payments were not subject to FICA (Social Security) taxes. The IRS had challenged the employer in...more

Supreme Court Holds Severance Payments are Taxable Wages under FICA

Dorsey & Whitney LLP on 3/31/2014

In a unanimous 8-0 decision issued on March 25, 2014, the United States Supreme Court held that severance payments made to employees terminated against their will are taxable wages under the Federal Insurance Contributions...more

Supreme Court Clarifies Tax Rules for Certain Severance Payments

Farella Braun + Martel LLP on 3/31/2014

The United States Supreme Court resolved a split among the Circuit courts over whether severance payments are “wages” and thus subject to taxation under the Federal Insurance Contributions Act (“FICA”). In a unanimous...more

Supreme Court Overturns The Sixth Circuit Court Of Appeals: Holds Severance Payments Subject To FICA Taxes

Polsinelli on 3/31/2014

In this e-Alert, we address the recent United States Supreme Court decision in U.S. v. Quality Stores, Inc., et al, No. 12-1408 (Sup. Ct. 03/25/2014), whereby the United States Supreme Court unanimously overturned the prior...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

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

Dechert LLP on 3/28/2014

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

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