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Refund Claim For FICA Taxes On Severance Payments

Financial Institutions

March 30, 2010
by Jason Wimmer, CPA, MBT

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Jason Wimmer Jason Wimmer, CPA, MBT
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Downsizing is a fact of life in today's challenging business environment and often results in severance payments to departing workers. These severance payments are included in workers’ income and subject to federal income tax withholding; however, the FICA tax treatment for severance payments has been a controversial issue over the years.


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