Posts Categorized: Wages

DOL Issues New Sick Leave Rules for Federal Contractors

in Wages, Welfare Benefits

On September 30, 2016, the United States Department of Labor, implementing Executive Order 13706, published its final rule establishing paid sick leave requirements for certain federal contractors. The final rule will apply to all employers with covered federal contracts that result from solicitations issued on or after January 1, 2017, that are awarded outside the solicitation process on or after January 1, 2017, or that are renewed, extended, or amended on or after January 1, 2017 as a result of bilateral negotiation.  Click here to read the full alert.

Severance Payments are FICA Wages

in Tax Issues, Wages

This morning the US Supreme Court issued a ruling providing that severance payments are taxable FICA wages. In United States vs. Quality Stores, Quality Stores made severance payments to employees who were involuntarily terminated as part of Quality Stores’ Chapter 11 bankruptcy. Quality Stores paid and withheld income and FICA taxes from the severance payments. Later, Quality Stores sought a refund on behalf of itself and former employees for FICA taxes withheld and paid. When the IRS did not allow the refund, Quality Stores initiated proceedings in Bankruptcy Court, which eventually reached the Supreme Court. After an exhaustive review of… Continue Reading