The U.S. Supreme Court has resolved a split among circuit courts with a late-March ruling that employer severance payments to employees are FICA-taxable as wages. Employers must, therefore, remit their portion of Federal Insurance Contributions Act (FICA) withholding taxes for those payments.
Supreme Court rules severance payments taxable
To continue reading this page, become an
HR Specialist Premium Plus member today!
HR Specialist Premium Plus member today!
Your subscription includes:
Ask the Attorney: Answers to your HR legal questions- Compliance Guidance: Access to 7,000 HR news articles, updated daily, sorted by state
- State-by-State: Summaries of HR laws in all 50 states
- Manager's Training Library: a treasure trove of printable training guides
- Memos to Managers for simple staff training
- The Hiring Toolkit: Job descriptions, interview questions & exemption tests for 200+ positions
- Webinar of the Week: Train instantly with recent recordings
- Sample Policies, Weekly Podcasts, Q&As and much, much more ...
