Reduction in Force in the Last Three Years? Act Soon for FICA Tax Refunds and Property Tax Reductions
The economic downturn in the last few years forced many employers to implement substantial involuntary and voluntary layoffs. These reductions in force (“RIFs”) are also the foundation for two potential tax savings opportunities:
Employers that made qualifying severance benefit payments during or after 2000 may be entitled to refunds of FICA taxes paid on these payments. The deadline for filing refund claims on FICA taxes paid in 2000 is April 15, 2004.
Manufacturers in Oregon and Washington that experienced RIFs in the last three years, or are planning one now, can potentially reduce property taxes on their plant and machinery. View full article (PDF).