Marianna Dyson Comments on Quality Stores Decision in Forbes

Severance Pay FICA Tax Refunds for Employers and Employees Back On The Table
Forbes
09.13.12Marianna Dyson comments on the Sixth Circuit’s affirmance in U.S. v. Quality Stores, Inc., which upheld Michigan district and bankruptcy court decisions that say that supplemental unemployment benefit payments are not subject to FICA tax. Employers have been grappling with the issue of whether FICA tax is due on severance payments to laid-off employees for a long time. "There's a long, schizophrenic history," Dyson said. The decision is giving employers and laid-off employees new hope that they are due FICA tax refunds on severance payments that could reach billions of dollars.
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