Filed In News

Quality Stores Decision Could Lead to Significant FICA Tax Refunds

by Editors on September 21, 2012

TGIF – and news of the possibility of FICA tax refunds for certain employers – if this applies to your company just think of all of the high-fives and chest bumps you will receive for bringing this to light:

The U.S. Court of Appeals for the Sixth Circuit recently held that certain dismissal payments were Supplemental Unemployment Compensation Benefits (SUB) exempt from FICA taxes—a clear split with the U.S. Court of Appeals for the Federal Circuit’s decision in line with an Internal Revenue Service (IRS) Revenue Ruling that significantly narrowed the criteria for determining whether certain separation payments qualify as SUB pay.  For employers that have made significant reductions in force payments in open years, the Quality Stores decision could lead to significant refunds of FICA tax.

[via Quality Stores Decision Could Lead to Significant Refunds of FICA Tax | The National Law Review.]

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