In a published decision this week, the Sixth Circuit reviewed the dismissal of an employee’s claim for excessive withholding of FICA taxes against her employer. In affirming the district court’s refusal to remand the federal tax case and subsequent outright dismissal of the claim, the court examined artful pleading, administrative remedies, and the timing of removal … Continue Reading
The Sixth Circuit has split with the Federal Circuit in ruling that severance payments paid to employees pursuant to an involuntary reduction in force are not “wages” for FICA tax purposes. United States v. Quality Stores, Inc., Case No. 10-1563 (Sept. 7, 2012) (PDF). The Court first confirmed that neither the Federal Insurance Contributions Act (“FICA”) nor … Continue Reading
