Tag Archives: Severance Pay

Employee Need Not Give Severance Back Before Moving Forward

Severance
An employee signs a separation agreement and receives severance pay. The employee then has second thoughts, alleges she was coerced into signing the agreement, and wants to pursue her discrimination claims in court. Must the employee give back the severance before suing? On August 13, 2018, in McClellan v. Midwest Machining, the Sixth U.S. Circuit … Continue reading this entry

FICA Taxes on Certain Severance Pay May Be Refundable

The IRS may owe FICA tax refunds on severance payments made by employers to laid-off or terminated employees as part of reductions in workforce. Every employer that paid severance to laid-off employees as part of a reduction in workforce in 2009 or later years needs to consider filing FICA tax refund claims.… Continue reading this entry