Is There Quality to the Argument That Severance Payments Are Not Taxable "Wages"? – Supreme Court Holds That Severance Payments Are Subject to Social Security Taxation

March 28, 2014

Earlier this week, on March 25, 2014, the U.S. Supreme Court handed down a highly publicized decision in the case of United States v. Quality Stores. In Quality Stores, the Court unanimously held that the severance payments at issue in the case are taxable "wages" for purposes of the rules governing Social Security taxation under the Federal Insurance Contributions Act (“FICA”).

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