News & Analysis as of September 19, 2024

FICA Taxes › Withholding Tax

+ Follow

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 +

The Special Timing Rule for Taxation of Nonqualified Deferred Compensation

Dorsey & Whitney LLP on 2/14/2024

For an employee who is a U.S. taxpayer, both the employer and the employee are liable for a portion of Social Security taxes and Medicare taxes (collectively referred to as “FICA” taxes) on the employee’s compensation. ...more

The Trust Fund Penalty – Times May be Tough, But Don’t “Borrow” from Withheld Taxes

Rivkin Radler LLP on 10/6/2023

It’s wonderful to be part of a successful business, especially in a strong economy. The owners are probably enjoying a more than just decent return on their investment and, in most cases, are getting along well enough. The...more

Withholding Taxes: Deferred Comp and Services Overseas

Rivkin Radler LLP on 9/7/2023

Approaching Year End- Which holiday do you dread the most? For me, it has always been, and likely will always be, Labor Day. Of course, with each passing year, anything that I describe as “always” is less meaningful than...more

Compliance Alert: FICA Reduction Redux – IRS Issues Guidance on Wellness Indemnity Payments

Woodruff Sawyer on 7/3/2023

On June 9, 2023, the IRS released OCC Memo 202323006, which advises that wellness indemnity payments under a fixed indemnity insurance policy are wages for purposes of Federal Insurance Contributions Act (FICA) taxes, Federal...more

Employee-Shareholders, Reasonable Compensation And Employment Taxes

Rivkin Radler LLP on 7/19/2021

Movement Toward Tax Increases- You may have read last week that Democrats on the Senate Budget Committee announced they had reached a deal on a budget resolution that will enable them to bypass Senate Republicans on the...more

Taxing Times - April 2021

Gerald Nowotny - Law Office of Gerald R.... on 4/1/2021

Male Escort Gets 21 Months In Prison For Tax Case - He lied on his tax returns, resulting in a tax loss to the IRS of $278,325. A male escort who lied to the IRS about his income was sentenced to 21 months in prison and...more

IRS Issues Guidance on the Deferral of Income from Private Corporation Stock Options and Restricted Stock Units

White & Case LLP on 1/7/2019

On December 22, 2017, the Tax Cuts and Jobs Act (the "Act") was signed into law. The Act added a new Section 83(i) to the Internal Revenue Code of 1986, as amended (the "Code"), pursuant to which certain employees of eligible...more

IRS Clarifies Role of Gross-Ups When Taxes Are Assessed on an Earlier Year’s Fringe Benefits

Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/19/2018

When the Internal Revenue Service (IRS) determines during an examination that a fringe benefit should have been taxed and the employer accordingly has to pay additional taxes in a later year, how is the subsequent payment...more

Walking the Line: Common Pitfalls in Civil and Criminal Employment Tax Cases

Blank Rome LLP on 9/7/2018

Department of Justice and the IRS have announced a renewed emphasis on both civil and criminal payroll tax enforcement lawsuits. This article provides a short overview of what an employment tax case is and identifies...more

Common U.S. Tax Withholding and Reporting Errors with Respect to Certain RSUs

Dorsey & Whitney LLP on 9/29/2017

A Canadian company (the employer) historically has not issued equity-based awards to employees of its U.S. subsidiaries, but it now is considering doing so. Past posts have addressed potential U.S. income tax pitfalls and the...more

California Appellate Court Holds Employer Must Withhold Taxes on Back Pay

Littler on 7/8/2015

On June 26, 2015, a California appellate court rendered a precedential opinion that should hopefully put to rest the issue of whether an employer must withhold taxes on settlements or judgments made to former employees in...more

Davidson v. Henkel — What’s Going On With Nonqualified Deferred Compensation Plans and FICA

Jackson Walker on 6/17/2015

In This Presentation: - Davidson v. Henkel Corp. - The Parties - NQ Plan - The Plan’s Tax Clauses - Davidson’s Pre-Retirement Counseling - 2011 Compliance Review and Letter - Henkel’s Tax...more

Employers: Properly Administer Nonqualified Deferred Compensation Plans, or You May Be Held Liable to Participants for Adverse Tax...

McCarter & English, LLP on 2/23/2015

An employer’s liability to retirees for “improper” FICA tax withholding illustrates the importance of diligent administration of nonqualified deferred compensation plans. In the recent case of Davidson v. Henkel Corp.,...more

Court’s Ruling Holding Corporate Officer Responsible for Trust Fund Recovery Penalty Illustrates Risk of Personal Liability for...

Blank Rome LLP on 5/2/2014

A district court in the Northern District of California has held that the officer of a now-defunct corporation is personally responsible for the Trust Fund Recovery Penalty based upon the company’s failure to collect, account...more

Automatic Gratuities Are Now Wages For FICA Tax Purposes

Akerman LLP - HR Defense on 1/9/2014

Restaurateurs and wait staff beware: beginning this month, the IRS will classify automatic gratuities not as "tips," but as service charges reportable as regular wages which are subject to payroll tax withholdings. ...more

This Time The Employer Is Responsible For The Withholding Error

Stinson - Benefits Notes Blog on 8/21/2013

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

16 Results

View per page

Page: of 1

FICA Taxes › Withholding Tax

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