Recent Case Opens Door to Civil Enforcement Claims for Negligent FICA Tax Withholding

By and on November 26, 2013

A District Court in Eastern Michigan recently rejected a motion to dismiss a participant’s benefit claim, holding that an employer legally could be liable to a participant in a nonqualified deferred compensation plan when the employer did not properly withhold FICA tax in the manner most advantageous to the participant. As a best practice, plan administrators should scrutinize any participant communications or claim responses because they can open the door to estoppel claims under ERISA.

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Patrick Ryan
Patrick D. Ryan focuses his practice on employee benefits & executive compensation matters unique to business transactions as well as generalized qualified plan matters. Patrick also has experience with health and welfare benefits.Read Patrick D. Ryan's full bio.

Ruth Wimer




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