2nd Circuit: Age Discrimination Suit Settlement Qualifies As Wages

NEW YORK - A lump-sum payment by a plaintiff's former employer in exchange for the plaintiff agreeing to withdraw his complaint qualifies as wages under the Federal Insurance Contributions Act (FICA) and is subject to FICA taxes, the Second Circuit U.S. Court of Appeals ruled Aug. 27 (Chester Gerstenbluth v. Credit Suisse Securities $(USA$) LLC, et al., No. 12-4125, 2nd Cir.; 2013 U.S. App. LEXIS 17841).

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