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    Supreme Court’s Busy Day: Severance Pay & ACA Contraceptive Mandate
    On Tuesday, March 25, 2014, the U.S. Supreme Court addressed two issues of great interest to employers: FICA tax applicability for severance payments and the contraceptive mandate in the Affordable Care Act (ACA). First, in the case of U.S. v. Quality Stores, the issue was whether severance payment [...]


    Supreme Court’s Busy Day: Severance Pay & ACA Contraceptive Mandate


    On Tuesday, March 25, 2014, the U.S. Supreme Court addressed two issues of great interest to employers: FICA tax applicability for severance payments and the contraceptive mandate in the Affordable Care Act (ACA).

    First, in the case of U.S. v. Quality Stores, the issue was whether severance payments are subject to employer- and employee-paid FICA taxes. The Sixth Circuit Court of Appeals reviewed statutory language and concluded that these payments were not subject to FICA tax. As a result, many employers had submitted protective claims to preserve their rights to FICA tax refunds if this decision was upheld.

    Read the full article in the Infinisource Newsroom.

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