A few weeks ago, the Sixth Circuit affirmed the Western District Court of Michigan’s holding in U.S. v. Quality Stores Inc., 424 B.R. 237 (W.D. Mich. 2010), that severance payments made to employees pursuant to an involuntary reduction in force were not “wages” for Federal Insurance Contribution Act (“FICA”) tax purposes. U.S. v. Quality Stores Inc., No. 10-1563 (6th Cir. 2012). The Sixth Circuit’s decision creates a circuit court split with the Federal Circuit and its 2008 decision in CSX Corporation v. United States, 518 F.3d 1328 (Fed. Cir. 2008).
USA, Employment & Labor, Insolvency & Restructuring, Litigation, Tax, Winston & Strawn LLP, Wage, Unemployment benefits, Federal Insurance Contributions Act tax, Severance package, Sixth Circuit
No Respite for Distressed Companies in Hong Kong
In Hong Kong, a company that is financially distressed may generally only avoid being liquidated or wound up if it:
Hong Kong, Insolvency & Restructuring, Winston & Strawn LLP, Wage, Debt, Liquidation, Moratorium, Debtor in possession, Title 11 of the US Code