SEVERANCE PAY IS NOT SUBJECT TO FICA

If your members earn the right to collect severance pay, you might want to remind the employer that it should not withhold FICA tax from the check.  If they ask why, direct them to this article by the LITTLER law firm about a recent federal circuit court decision.

About AdminUN

FEDSMILL staff has over 40 years of federal sector labor relations experience on the union as well as management side of the table and even some time as a neutral.
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