Law360, New York (March 25, 2014, 9:44 PM EDT) -- The U.S. Supreme Court ruled Tuesday, in US. v. Quality Stores Inc, that certain severance payments made to employees terminated against their will are taxable wages under federal law. Here, attorneys react to the ruling:
David P. Doyle, Day Pitney LLP
"The significance of today's Quality Stores ruling is that it finally puts to bed the question of whether severance payments are, and were, subject to FICA withholding and taxation.
"The Supreme Court ruled that severance payments are in fact subject to FICA, reversing the Sixth Circuit's ruling. The Sixth Circuit's ruling was based upon statutory construction, while the Supreme Court...
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