Contingent Workers/Joint Employment

Employers who contract with temporary and employee leasing companies may need to review contracts which may address exposure to employee claims alleging joint employment. These contracts typically specify who is considered to be the “employer” but this designation may not

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Severance Payment/FICA Contributions

The U.S. 6th Circuit Court of Appeals (covering Kentucky) has ruled that payments made under a Severance Agreement are not taxable because they are actually supplemental unemployment compensation which is itself, not taxable.

Employers who have withheld FICA contributions would be entitled to seek a refund from the IRS and presumably employees paying taxes on Severance Payments would also be able to seek refunds.

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