The NBA’s King James and other professional athletes and entertainment personalities don’t have to pay much into Social Security. Why? The annual earnings cap.
One appeals court said FICA taxes are due on severance packages paid to laid-off workers. Another disagreed. Now the Supreme Court will decide.
The 6.2 percent payroll tax amount returned on Jan. 1, meaning that workers will see smaller paychecks in 2013.
A court says severance pay isn’t subject to FICA taxes. That’s good news for laid off workers, but the final decision will probably come from the Supreme Court.