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....

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