The Supreme Court of the United States has decided in favor of the Internal Revenue Service in United States v. Quality Stores, Inc., holding that severance payments made pursuant to plans that did not tie payments to the receipt of state unemployment insurance are subject to Federal Insurance Contributions Act (FICA) tax. The decision overturns a taxpayer-friendly decision from the U.S Court of Appeals for the Sixth Circuit, which, if upheld, could have resulted in FICA tax refund claims to individuals and employers.
Supreme Court Decides in Favor of IRS in Quality Stores: FICA Generally Applies to Severance Payments
Posted In Benefit Controversies
Anthony A. BongiornoAnthony (Tony) A. Bongiorno has extensive jury trial experience in a variety of commercial matters and serves as the partner-in-charge of the Firm’s Boston office. Tony has successfully tried cases in various federal and state courts around the country. In addition to his significant jury trial experience, Tony has also tried matters under the auspices of the American Arbitration Association, the International Centre for Dispute Resolution and the International Chamber of Commerce. Tony has represented clients in many industries, including energy, health care, biotech and construction.
Jeffrey HoldvogtJeffrey (Jeff) M. Holdvogt regularly counsels public and privately held companies and tax-exempt organizations on a wide range of employee benefits matters. These include the design and administration of complex pension, 401(k) and 403(b) plans, nonqualified and executive deferred compensation arrangements, fiduciary and plan investment issues under the Employee Retirement Income Security Act (ERISA), internal compliance reviews and voluntary correction filings, and benefit plan matters arising from mergers and acquisitions, as well as other ongoing day-to-day retirement and executive compensation issues. Read Jeff Holdvogt's full bio.
Ruth WimerRelated Posts
- Quality Stores Decision Could Lead to Significant Refunds of FICA Tax
- Recent Case Opens Door to Civil Enforcement Claims for Negligent FICA Tax Withholding
- 2025 Employee Benefits & Workplace Predictions
- Employers Be Forewarned and Forearmed: Recent IRS Announcements Require Action on ERTC Claims
- EEOC Alleges Abortion Travel Benefits Violate ADA, Title VII; Abortion Rates Tick Up; Indiana Judge Rules Ban Violates Religious Freedom
BLOG EDITORS
STAY CONNECTED
TOPICS
ARCHIVES
RECENT POSTS
- Enforcement of Mental Health Parity Regulations Suspended: Takeaways for Plan Sponsors and Health Insurance Issuers
- Food as Medicine: A Deep Dive Into Reimbursement
- New EO Targets Prescription Drug Costs – and Drug Manufacturers, Hospitals, and Health Centers
- Understanding and Navigating Compliance With NIH Grant DEI Policies
- 5 Trends in Health Plan Regulations to Watch in New Trump Administration
