Supreme Court Rules that Certain Severance Payments Are Subject to FICA Taxes: Supreme Court Decision Resolves a Circuit Split Regarding Whether Payments of Certain Severance Payments Constitute “Wages” for Purposes of FICA

Sullivan & Cromwell LLP - March 25, 2014

Today, the Supreme Court resolved a split between the Circuit Courts of Appeals related to the treatment of certain severance payments for purposes of the Federal Insurance Contributions Act (“FICA”), holding that such payments constitute “wages” for such purposes.