As of January 1, 2017, the taxable wage base increased to $127,200, up $8,700 from the $118,500 limit that had been in place since 2015. As a result, higher-income workers will pay more FICA taxes, and there is the possibility that companies will pay more FICA tax dollars in 2017 when paying severance. Did you know there is a way companies can be exempt from FICA tax altogether for employees involved in an involuntary reduction-in-force?

Published in Severance Strategies
Tuesday, 15 November 2016 00:52

A Better Way to Manage Employee Transitions

When a company considers layoffs, the leadership and HR teams have a lot to think about.  Who will be impacted?  What benefits will they receive and for how long?  How will the reduction-in-force impact the health of the business?  For many companies, one of the last considerations is one of the most important — what's the best way to help their former employees transition to new employment quickly and with the best support services? An Employment Transition Benefit ("ETB") Plan may be the answer.

Published in Severance Strategies