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.