On March 25, the U.S Supreme Court ruled in favor of the IRS over whether certain severance compensation is subject to payroll taxes. My prior blog post on this Sixth Circuit case is here. The Supreme Court ruled 8-0 to overturn the Sixth Circuit decision. This case would have had huge tax impact had the Sixth Circuit ruling been upheld.
Severance payments remain FICA taxable
Permanent link to this article: http://betweenthenumbers.net/2014/03/severance-payments-remain-fica-taxable/