Employers offering severance payment to employees are typically uncertain about the payroll taxes that may apply to these additional payments. Severance pay is treated as “supplemental wages” because it is not a payment for services in the current payroll period but a payment made upon or after termination of employment for an employment relationship that has
Managing Layoffs and Reductions in Force
By Michael Moore on
Posted in Discrimination & Harassment
As the economic meltdown cascades through the financial, banking and related sectors, many employers are planning staff cuts. Selecting employees for lay off must be collaboration between managers and human resources. HR must be able to influence the process to reduce legal risks and assuage the anxiety of remaining employees:
Establishing Business Justification and Layoff …
WARN Act’s Faltering Company Exception Clarified
By Michael Moore on
Posted in Employer Liability
Businesses face increasing uncertainty over the availability of financing because of the economic downturn and tightening of credit markets. Financially troubled businesses may need to curtail operations through a plant closing or mass layoff if additional financing is not received. Employers need to manage compliance with the Worker Adjustment and Retraining Notification Act (WARN) as their…