Some 6th Circ. Employers May Be Owed FICA Tax Refunds

Law360, New York (October 24, 2012, 1:27 PM EDT) -- On Sept. 7, the Sixth Circuit Court of Appeals issued a decision in United States v. Quality Stores Inc., holding that certain severance payments are not "wages" subject to Federal Insurance Contributions Act tax, and upheld a bankruptcy court’s decision ordering a full refund of more than $1 million of FICA taxes paid by an employer with respect to severance payments it made to employees whose positions were eliminated in connection with the bankruptcy.

This decision creates an opportunity for employers in the Sixth Circuit (which...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.