Paul L. Caron

Tuesday, October 1, 2013

Supreme Court Grants Cert. to Decide Whether Severance Pay Is Subject to Payroll Tax

Supreme CourtThe U.S. Supreme Court granted certiorari today in United States v. Quality Stores, Inc., No. 12-1408, to resolve a split in the Sixth Circuit (United States v. Quality Stores, Inc., 693 F.2d 605 (Sept. 7, 2012)) and Federal Circuit (CSX Corp. v. United States, 518 F.3d 1328 (Fed. Cir. 2008)) over whether severance payments to employees are “wages” subject to Social Security and Medicare taxes. The government’s opening brief is due November 15, with oral argument likely in  January 2014.

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