April 2014
Issue No. 51
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FLSAFLSA Overtime Exemptions Under Review

On March 13, 2014 President Obama signed a memorandum charging the Department of Labor with updating the current white-collar overtime exemptions set forth in Section 13(a)(1) of the Fair Labor Standards Act. While it's still unknown just what changes may be made to the existing overtime regulations, it is expected that the changes would enable more previously exempt employees to receive overtime pay.

EmploymentEmployment Outlook Expected to Improve Throughout Spring

According to Bloomberg BNA's second quarter employment outlook survey, job opportunities and security are expected to improve during spring 2014 while layoffs and workforce reductions continue to drop. The findings, which were culled from the responses of 165 participants, confirm what PROXUS' payroll and HR divisions have seen recently within client organizations.  
FICASupreme Court Rules Severance Pay Subject to FICA Taxes

The U.S. Supreme Court recently ruled that severance payments given to terminated employees are, indeed, subject to Social Security and Medicare taxes under the Federal Insurance Contributions Act (FICA). The ruling, which received 8-0 votes in favor, overturned the Sixth Circuit Court of Appeals' 2012 ruling in United States v. Quality Stores, Inc. that deemed that severance pay was not subject to payroll taxes.


The Supreme Court ruling can be read in full here.


This new ruling means that employers should continue to withhold the appropriate amounts under FICA tax guidelines from their former employees' severance pay. View additional information about FICA taxes, including withholding rates for Social Security and Medicare, here.

VoltagePROXUS Chosen as Finalist in 2014 Voltage Awards

PROXUS has been chosen as a finalist among 32 other regional companies in Philadelphia SmartCEO's 2014 Voltage Awards, a program designed to celebrate the increasing role of technology in business and the impact it has on economic growth. PROXUS is being recognized for its fully integrated, cloud-based single source workforce management system, PROXUS Pinnacle HR.

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John Israel, Principal, ext. 110
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