The Supreme Court recently ruled that lump sum severance payments made to laid-off employees can be subject to FICA taxes. This overrules a decision by the Sixth Circuit Court, which ruled that such payments did not have to be taxed.
In the case of U.S. v. Quality Stores, the store claimed $1 million in FICA tax refunds when it laid off thousands of employees after entering bankruptcy in 2001. In the fall of 2012, the Sixth Circuit ruled that the severance was not subject to FICA taxes.
What’s Happening at The Law Offices of Steven Mitchell Sack
Testimonials
“Mr. Sack was phenomenal. He was extremely clear, helpful, and realistic but at the same time energizing, very hardworking and fast. He gave me strength to keep going when I wanted to collapse and hide.”
— Alice H.
A Master at his Legal Craft! “Steven Mitchell Sack is the best Employment and Labor lawyer in New York City. As a successful business owner for the past 33 years, I have hired him for different cases.”
— Robin M.
“I am writing you to thank you for writing the book 'Getting Fired.' Due to what I learned in your book I was able to leave my former position with a generous severance package.”
— Alfonzo M.
“Steven extended an outstanding effort, and effective service, which resolved a complex matter with an ex-employer. I can't imagine having better attorney services than Steven.”
— Rick B.
Mr. Sack answered every phone call, text message and email that I sent to him giving me assurance that I was in 'good hands' and I couldn't agree with that statement more. He is an exceptional attorney and I recommend that you contact him immediately if you're ever in the same situation I was in."
— Teodoro "Jon" N.
Outstanding! A lawyer with human compassion. “Steven was always made himself available to speak to me at any given time. Whenever, I had doubts or a question Steven gave me moral and professional support."
— Francesca G.
"I wanted to express my sincere thanks for the work you did on my behalf. I know it wasn’t easy.
Now that I have made the decision to pursue a greater compensation through litigation, if necessary, I feel much better.
Thank you once again for making this whole experience more bearable.”
— Maria C.
"Mr. Sack was extremely precise, professional, kept to a time line, and always called when he said he would. He was also very supportive and reassuring. He offered a lot of help during this difficult time one experiences when they have lost their job. I would highly recommend him to anyone with a need for an employee’s lawyer."
