In an important recent decision, United States v. Quality Stores, Inc., et al.,1 in which Pepper represented the prevailing party, the U.S. Court of Appeals for the Sixth Circuit held that supplemental unemployment compensation benefits (SUB payments) paid by a bankrupt company to its former employees were not wages subject to taxation under the Federal Insurance Contributions Act (FICA).
USA, Employee Benefits & Pensions, Insolvency & Restructuring, Litigation, Tax, Troutman Pepper, Wage, Unemployment benefits, Federal Insurance Contributions Act tax, Severance package, Internal Revenue Service (USA), Sixth Circuit