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Severance Pay Internal Revenue Service Termination

Williams Mullen

409A INSIGHTS: INVOLUNTARY TERMINATION - Second Circuit Highlights Key Definitional Aspects in Soto v. Disney Severance Pay Plan

Williams Mullen on

A recent decision of the Second Circuit Court of Appeals protects discretionary decisions by plan administrators and illustrates the application of the definition of an “involuntary separation from service” under section 409A...more

Orrick - Employment Law and Litigation

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

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

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