News & Analysis as of

FICA Taxes › Supreme Court of the United States

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 -
Nilan Johnson Lewis PA

U.S. Supreme Court Deems FELA Payments as Taxable

Nilan Johnson Lewis PA on

Earlier this week, the United States Supreme Court issued an opinion in BNSF Railway Co. v. Loos, holding that a railroad’s payment to an injured worker for lost wages is taxable under the Railroad Retirement Tax Act (RRTA)....more

Stinson LLP

U.S. Department of Labor's New Guidance on Independent Contractors Highlights a Key Risk Area for Employers

Stinson LLP on

Businesses should carefully assess any independent contractor arrangements in light of an “Administrator’s Interpretation” issued on July 15, 2015 by the U.S. Department of Labor’s Wage and Hour Division (DOL). While the...more

Orrick - Employment Law and Litigation

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

Orrick - Employment Law and Litigation on

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

Skadden, Arps, Slate, Meagher & Flom LLP

Employment Flash (June 2014)

Skadden, Arps, Slate, Meagher & Flom LLP on

In This Issue: - NLRB Recess Appointments Unconstitutional - SEC Brings First-Ever Employment Retaliation Claim - EEOC Challenges Employer Severance Agreements - New York State Transportation Industry...more

Fenwick & West LLP

Supreme Court Confirms FICA Taxes Must be Withheld from Severance Payments

Fenwick & West LLP on

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

Fenwick & West LLP

Fenwick Employment Brief - April 2014

Fenwick & West LLP on

Supreme Court Confirms FICA Taxes Must be Withheld from Severance Payments - Finding severance payments to be a form of “remuneration for employment,” the United States Supreme Court in United States v. Quality Stores,...more

Morgan Lewis

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

Morgan Lewis on

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

Sheppard Mullin Richter & Hampton LLP

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

Sheppard Mullin Richter & Hampton LLP on

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

Bond Schoeneck & King PLLC

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

Bond Schoeneck & King PLLC on

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

Parker Poe Adams & Bernstein LLP

Supreme Court Finds Severance Payments Subject to FICA Withholding

Parker Poe Adams & Bernstein LLP on

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

McNees Wallace & Nurick LLC

Employment Alert

McNees Wallace & Nurick LLC on

In This Issue: EEOC's Latest Target - Severance Agreements; Pennsylvania's Unemployment Compensation Law May Require Employers to Provide Response to Unemployment Information Requests; and Supreme Court Clarifies that...more

Tucker Arensberg, P.C.

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

Tucker Arensberg, P.C. on

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

McNees Wallace & Nurick LLC

Supreme Court Clarifies That Severance Payments Are Taxable

McNees Wallace & Nurick LLC on

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

Proskauer - Employee Benefits & Executive...

Supreme Court Finds Severance Payments are Subject to FICA

Proskauer - Employee Benefits & Executive... on

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

FordHarrison

Supreme Court Decides Severance Not Exempt From FICA

FordHarrison on

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

Stinson - Benefits Notes Blog

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

Stinson - Benefits Notes Blog on

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

Dorsey & Whitney LLP

Supreme Court Holds Severance Payments are Taxable Wages under FICA

Dorsey & Whitney LLP on

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

Farella Braun + Martel LLP

Supreme Court Clarifies Tax Rules for Certain Severance Payments

Farella Braun + Martel LLP on

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

Polsinelli

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

Polsinelli on

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

Sheppard Mullin Richter & Hampton LLP

Severance Payments are Taxable under FICA

Sheppard Mullin Richter & Hampton LLP on

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

Ervin Cohen & Jessup LLP

Severance Pay As Wages: Business As Usual

Ervin Cohen & Jessup LLP on

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

Ballard Spahr LLP

Supreme Court Rules That Severance Payments Are Subject to FICA Taxes

Ballard Spahr LLP on

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

Dechert LLP

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

Dechert LLP on

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

Foley Hoag LLP

Supreme Court Finds that Severance Pay is Wages for Purposes of Payroll Taxes

Foley Hoag LLP on

On March 25, 2014, the Supreme Court held in United States v. Quality Stores, Inc. that severance payments are taxable wages for FICA purposes. This decision confirms employers’ responsibility to treat severance pay as...more

McDermott Will & Emery

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

McDermott Will & Emery on

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

53 Results
 / 
View per page
Page: of 3
Next »

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:
Sign up Log in
*By using the service, you signify your acceptance of JD Supra's Privacy Policy.
- hide
- hide