Tag Archives: FICA

Federal Questions, Removal, and Remand: Sixth Circuit Affirms Dismissal of Class Action FICA Claim

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

Sixth Circuit Splits from Federal Circuit on Whether Severance Payments are Subject to FICA Payroll Taxes

 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