Severance Pay

International Dismissal Toolkit: Individual Employment Terminations and Reductions-in-Force Outside the United States

by Donald C. Dowling, Jr. | White & Case LLP on 5/16/2013

Firing an employee in the United States can be a challenge. Group firings—reductions in-force — can be an even bigger challenge. And from the point of view of a multinational headquartered in the United States, overseas...more

Global HR Hot Topic - May 2013: Individual Employment Dismissal Obligations Outside the US

by Donald C. Dowling, Jr. | White & Case LLP on 5/2/2013

Challenge: Overseas, dismissing an individual employee gets complex and is heavily regulated. Dismissal mandates under foreign law tend to fall into three broad categories: dismissal procedures, pre-termination notice...more

Bill on Bankruptcy: Easterbrook Turns the Tide on Student Loans [Video]

by Bloomberg Law on 4/17/2013

April 18 (Bloomberg) -- Why and when U.S.-managed hedge funds can go bankrupt in the Caribbean, not in the U.S., is the first item discussed on the new bankruptcy video with Bloomberg Law's Lee Pacchia and Bloomberg...more

Deadline for Filing FICA Tax Refunds is April 15

by 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

Speaking Of . . . Trade Secrets - Damages For Misappropriation Can Be Full Refund Of Ex-Employee’s Severance Pay

by Walter Judge | Downs Rachlin Martin PLLC on 3/15/2013

When your trade secrets are stolen, you might sue the ex-employee who stole them, or the competing business that’s now in possession of them, or both. What’s an appropriate measure of damages when your trade secrets are...more

Fenwick Employment Brief - March 2013

by Allen M. Kato, Michael A. Sands | Fenwick & West LLP on 3/14/2013

In This Issue: - Feature Articles: - California Court Of Appeal Significantly Expands Pregnancy Leave Rights - New York Employer's Flex-time Policy Precluded Holding Employee Accountable For Tardiness...more

April 4th Deadline for FICA Tax Treatment of Severance Pay Under Quality Stores

by Vicki M. Nielsen | Ogletree, Deakins, Nash, Smoak & Stewart,... on 3/14/2013

Two deadlines relating to the Sixth Circuit Court of Appeals’ decision in United States v. Quality Stores, Inc., No. 10-1563 (6th Cir. Sept. 7, 2012), are quickly approaching. The deadline for the United States to file a...more

File for FICA Tax Refunds Before April 15

by 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

Global HR Hot Topic - February 2013: Threshold Dismissal Circumstances Overseas: Good Cause, Economic Necessity, Employee Rank and...

by Donald C. Dowling, Jr. | White & Case LLP on 2/6/2013

Challenge: Multinationals facing overseas dismissals too often skip ahead to check local laws on pre-termination notice, severance pay and dismissal procedures. But often, threshold circumstances override these...more

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

by Loeb & Loeb LLP on 1/24/2013

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

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

by Paul M. Hamburger, Elizabeth Mills, Andrea Rattner | 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

Employment Law in Costa Rica: A Country Protective of its Employees and Natural Environment

by Celia Joseph | Fisher & Phillips LLP on 1/18/2013

On January 9, 2013 it was reported in thecostaricanews.com that the Costa Rican government has announced a new aggressive policy to attract foreign investment. According to the article, the government of Costa Rican’s...more

Legal Alert: The 2012 Tax Litigation Year in Review: Important Events

by N. Jerold Cohen, Thomas Cullinan, Joseph DePew, Kendall Jones, John Lanier, Jerome Libin, Shane Lord, Mary Monahan, Victoria O’Connor, Daniel Schlueter, Jeffrey Starkey | Sutherland Asbill & Brennan LLP on 1/16/2013

The year 2012 was quite an interesting one for tax controversy. Whereas 2011 brought a win for the Treasury on deference issues in Mayo Foundation for Medical Ed. v. United States, 131 S. Ct. 704 (2011), 2012 was the year...more

Levick Weekly - December 21, 2012: Why Netflix Shouldn't Back Down

by Richard S. Levick | LEVICK on 12/21/2012

In This Issue: - National Security’s Business Impacts - Why Netflix Shouldn’t Back Down - Class Certification - The SEC Gets Its Groove Back - The Story Of Fragrances - NACD Boardvision - Blogs - Excerpt...more

Trinity Health Corporation Agrees to Settle EEOC Retaliation Lawsuit

by U.S. Equal Employment Opportunity Commission... on 12/21/2012

Company Had Policy of Delaying or Denying Severance Payments to Employees Who Signed Severance Agreements and Then Filed Discrimination Charges, Agency Says - INDIANAPOLIS - Trinity Health Corporation, a national...more

Court Holds Severance Payments Not Subject To FICA Taxes; Refund Claims Should Be Filed Soon

by Brian M. Johnston, D. Scott Lindstrom, William J. Sanders, David N. Zimmerman | Polsinelli on 12/17/2012

In its recent decision, the United States Court of Appeals for the Sixth Circuit in U.S. v. Quality Stores, Inc., No. 10-1563 (6th Cir., 9/7/2012) held that certain severance payments made to former employees were not subject...more

Employer Unable To Condition ERISA Severance Payments on Signing Undisclosed Non-Compete

by Kenneth Vanko | Clingen Callow & McLean, LLC on 11/7/2012

For those of you dying to know more about ERISA, here ya go. First, the basics. ERISA is a sweeping federal statute that governs employee health, welfare, and benefit plans. Employers often institute ERISA-based plans...more

Severance Payments Held to be Exempt From FICA Taxes; Creates Split in the Circuits

by Sheppard Mullin Richter & Hampton LLP on 10/25/2012

In a recent case, United States v. Quality Stores, the Sixth Circuit ruled that certain severance payments paid to involuntarily terminated employees pursuant to an employer’s reduction in workforce are not “wages” for FICA...more

Quality Stores, Inc. Update

by Morgan Lewis on 10/24/2012

Department of Justice files petition for rehearing en banc, challenging the Sixth Circuit's recent decision that severance payments paid pursuant to an involuntary reduction in force are exempt from FICA taxes. On...more

Sixth Circuit Nixes FICA Tax on Severance Pay

by Dickinson Wright on 10/22/2012

The U.S. Court of Appeals for the Sixth Circuit has affirmed a Michigan Bankruptcy Court and approved a taxpayer’s request for a refund of FICA taxes paid on behalf of former employees. Quality Stores et al....more

Doing Business in Canada: Employment & Labour

by Bennett Jones LLP on 10/18/2012

The relationship between an employer and an employee in Canada is heavily regulated. All jurisdictions in Canada – both federal and provincial - have enacted legislation (statutes and regulations) governing various aspects of...more

December 31 Section 409A Correction Deadline for Severance Pay Approaching

by Benjamin I. Delancy, Ann Carr Mackey | Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/17/2012

The Internal Revenue Service(IRS) has given employers until December 31, 2012 to correct a problem frequently found in severance agreements and other similar arrangements. If the problem is not addressed by that date, then it...more

IRS Penalty Relief For Severance Pay Expires On December 31

by Benjamin I. Delancy, Ann Carr Mackey | Ogletree, Deakins, Nash, Smoak & Stewart,... on 10/17/2012

The IRS has given employers until December 31, 2012 to correct a problem frequently found in severance agreements and other similar arrangements. If not corrected by that date, it could be much more expensive to correct the...more

FICA Taxes on Certain Severance Pay May Be Refundable

by Foley & Lardner LLP on 10/16/2012

The IRS may owe FICA tax refunds on severance payments made by employers to laid-off or terminated employees as part of reductions in workforce. Every employer that paid severance to laid-off employees as part of a reduction...more

Employers Should Evaluate Refund Opportunities Following Sixth Circuit Ruling on FICA Taxes and Severance Payments

by Ballard Spahr LLP on 10/12/2012

In United States v. Quality Stores, Inc., the Sixth Circuit held that payments of supplemental unemployment benefits (SUB payments) are not taxable wages subject to FICA tax withholding. Although the issue is not finally...more

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International Dismissal Toolkit: Individual Employment Terminations and Reductions-in-Force Outside the United States

Global HR Hot Topic - May 2013: Individual Employment Dismissal Obligations Outside the US

Bill on Bankruptcy: Easterbrook Turns the Tide on Student Loans [Video]

Deadline for Filing FICA Tax Refunds is April 15

Speaking Of . . . Trade Secrets - Damages For Misappropriation Can Be Full Refund Of Ex-Employee’s Severance Pay

Fenwick Employment Brief - March 2013

April 4th Deadline for FICA Tax Treatment of Severance Pay Under Quality Stores

File for FICA Tax Refunds Before April 15

Global HR Hot Topic - February 2013: Threshold Dismissal Circumstances Overseas: Good Cause, Economic Necessity, Employee Rank and...

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

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

Employment Law in Costa Rica: A Country Protective of its Employees and Natural Environment

Legal Alert: The 2012 Tax Litigation Year in Review: Important Events

Levick Weekly - December 21, 2012: Why Netflix Shouldn't Back Down

Trinity Health Corporation Agrees to Settle EEOC Retaliation Lawsuit

Court Holds Severance Payments Not Subject To FICA Taxes; Refund Claims Should Be Filed Soon

Employer Unable To Condition ERISA Severance Payments on Signing Undisclosed Non-Compete

Severance Payments Held to be Exempt From FICA Taxes; Creates Split in the Circuits

Quality Stores, Inc. Update

Sixth Circuit Nixes FICA Tax on Severance Pay

Doing Business in Canada: Employment & Labour

December 31 Section 409A Correction Deadline for Severance Pay Approaching

IRS Penalty Relief For Severance Pay Expires On December 31

FICA Taxes on Certain Severance Pay May Be Refundable

Employers Should Evaluate Refund Opportunities Following Sixth Circuit Ruling on FICA Taxes and Severance Payments

Bill on Bankruptcy: Easterbrook Turns the Tide on Student Loans [Video]

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