Employee Benefits Blog

Subsidized Post-Termination COBRA Benefits

Nancy Campbell recently wrote a newsletter that discussed how health care reform impacts COBRA. One of the issues that Nancy addressed is subsidized COBRA and severance arrangements. The purpose of this blog is to dive deeper into the issues employers should consider when providing subsidized post-termination COBRA benefits. • Providing Post-Termination Medical Benefits on an After-Tax […]

July 31, 2014 | 3 min read | Tagged: 409A, COBRA, Health Care, health care reform, health plans, post-termination medical, severance

Greg Gautam Partner

Employers May Be Able to Exempt Severance Payments from FICA Tax under Quality Stores

The Supreme Court recently ruled in U.S. v. Quality Stores that severance paid to employees is considered wages for FICA purposes. Before the Court’s decision, there was little doubt that employer-provided severance was wages for income tax purposes, but lower court cases were a mixed bag about whether severance was wages for FICA tax purposes. […]

May 28, 2014 | 2 min read | Tagged: FICA, severance, SUB payments, Supreme Court, U.S. v. Quality Stores

Marvin "Bucky" Swift Former Partner