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Subject:  FICA and Severance Pay Date:  10/2/2013  7:49 AM
Author:  bacon Number:  119242 of 131788

In a related thread, TMFPMarti noted The Supreme Court has agreed to hear a case regarding whether or not severance pay is subject to FICA....

I have an ignorance question. Why would this even be a question? Why wouldn't severance pay just be an additional "regular pay" (here's two weeks' pay, now hit the bricks), with FICA applicable and subject to the usual pay limits of FICA (roughly $114k in 2013 according to Pub 15-A Introductory Material)?


Eric Hines
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