Employers who paid severance pay in 2010 and paid FICA tax, should file a Protective Refund Claim by April 15, 2014. The claim is filed on Form 941-X, Adjusted Employer’s Quarterly Federal Tax Return or Claim of Refund. This claim allows employers to be eligible for a refund, if the Supreme Court rules severance pay is not subject to FICA taxes. The Supreme Court is expected to rule on this matter sometime during the summer of 2014.
Employers using payroll services such as ADP or Paychex, should contact their payroll service provider, to discuss them filing the claim on your behalf. Both payroll providers have advertised they have this service available to their clients.