FICA Taxation of Severance Pay May Remain Thorny Issue Due To Conflicting Rulings
Conflicting court rulings may lead to confusion and dispute over whether employers are required to pay Federal Insurance Contributions Act tax – or FICA taxes – on severance payments made to former employees. The issue has been a contentious one, with the Internal Revenue Service asserting that severance payments are considered wages under tax law […]
Author: Frank L. Brunetti