When Wages Are Not FICA Wages, New Hampshire MCLE 1.0

 

Agenda

Definitions • FICA Wages • Non-FICA Wages Importance of Determining Non-FICA Wages • Reduce Employer Liability • Avoid Monetary Penalties for Misclassifications Examples of Non-FICA Wages • Severance Pay to Tenured Teachers – What Does Case Law Say? • Employee Termination Payments – Four Types of Termination Payments – Which Types Are Not Considered Wages? • Settlement Damages Paid to Employees – What Types of Claims Are Not Considered Wages? – What About Awarded Attorney’s Fees? – What Are Back Pay and Future Pay Damage Awards? • Reimbursement of Employee Business Expenses – Wages or Not? – What Does Reasonable Expectation Mean? – What About Hourly per Diem Rates? Classification of Non-FICA Wages Effect on Retirement Benefits • Importance of Plan Definitions • Elective Deferrals • Payment of Benefits to Spouses Arising out of Divorce Proceedings Recent Cases