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Severance Pay Tax Refunds Wages

Mintz - Employment, Labor & Benefits...

A FICA Refund for Employers? Supreme Court to Decide Whether FICA Obligations Extend to Severance Pay

As all employers know, wages paid to employees are subject to required withholdings and deductions for income taxes and employee contributions to Social Security and Medicare (which is commonly referred to in shorthand as...more

Ballard Spahr LLP

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

Ballard Spahr LLP on

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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