Employers May Reap Windfall In High Court FICA Case

Law360, New York (October 1, 2013, 7:31 PM EDT) -- The U.S. Supreme Court agreed Tuesday to weigh in on whether severance payments to involuntarily terminated workers are taxable under the Federal Insurance Contributions Act, and attorneys say that if the court finds they are not, it will open the floodgates for employers to claim significant refunds.

The justices agreed to hear the government's appeal of a Sixth Circuit ruling that the severance payments agricultural retailer Quality Stores Inc. made to its workers after laying them off were in fact supplemental unemployment compensation benefits that are...
To view the full article, register now.