Here is a new one – the Supreme Court ruled that the severance a large company paid to its employees after closing its doors and laying everyone off were paid wages subject to FICA and Medicare tax. Duh! See the details in this article by Greg Stohr of Bloomberg and carried by AccountingToday:

http://www.accountingtoday.com/news/supreme-court-rules-severance-pay-can-be-taxed-70142-1.html?utm_campaign=daily-mar%2026%202014&utm_medium=email&utm_source=newsletter

Now, I don’t really know why this was ever considered anything else, especially considering how the money was paid to the employees, but I guess there was some question (????) Anyway this will keep a lot of other big companies in the same situations from trying to get back refunds of social security (claiming the severance was a form of unemployment compensation.) They would have to structure the payout differently to even have a chance after this ruling.

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