[JURIST] The US Supreme Court [official website] ruled [opinion, PDF] unanimously on Tuesday in US v. Quality Stores, Inc. [SCOTUSblog backgrounder] that involuntarily terminated severance packages given to employees are subject to wage taxation under the Federal Insurance Contributions Act (FICA) [text, PDF]. The case stems from the bankruptcy of Quality Stores, a former agricultural speciality retailer based in Michigan. Quality Stores closed more than 300 locations in 2001 and 2002 and terminated its remaining employees as part of a...
Source: http://jurist.org/paperchase/2014/03/supreme-court-rules-tax-unavailaable-for-severance-packages.php
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