Employment 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.
Supreme 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.
PROXUS 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.