October Term 2013 · Docket 12-1408
Do supplemental unemployment benefits count as wages for FICA tax purposes?
The government argues these payments are wages. Quality Stores claims they are exempt benefits.
Verified source milestones
- — An official oral-argument transcript was verified.
The arguments, in order
This case may have been argued more than once. Each entry below uses that session's official transcript. Later arguments do not erase earlier ones.
Argument 1 ·
What happened at the argument
Mr. Feigin argued these payments are wages under FICA.
Mr. Hertzberg argued these payments are exempt benefits under the statute.
questions_asked_by_justices
Read the official transcript for this argument · Official argument details
Sources used for this argument breakdown
- Official Supreme Court Transcript — file page 10, lines 29-33 — Transcript, file page 10, lines 29-33
- Official Supreme Court Transcript — file page 11, lines 7-15 — Transcript, file page 11, lines 7-15
- Official Supreme Court Transcript — file page 13, lines 17-31 — Transcript, file page 13, lines 17-31
- Official Supreme Court Transcript — file page 13, lines 33-35 — Transcript, file page 13, lines 33-35
- Official Supreme Court Transcript — file page 14, lines 43-47 — Transcript, file page 14, lines 43-47
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 51-7 — Transcript, file page 4, lines 51-7
- Official Supreme Court Transcript — file page 7, lines 31-37 — Transcript, file page 7, lines 31-37
- Official Supreme Court Transcript — file page 7, lines 47-47 — Transcript, file page 7, lines 47-47
- Official Supreme Court Transcript — file page 8, lines 11-13 — Transcript, file page 8, lines 11-13
- Official Supreme Court Transcript — file page 8, lines 19-23 — Transcript, file page 8, lines 19-23
- Official Supreme Court Transcript — file page 8, lines 3-5 — Transcript, file page 8, lines 3-5
- Official Supreme Court Transcript — file page 8, lines 47-9 — Transcript, file page 8, lines 47-9
- Official Supreme Court Transcript — file page 9, lines 41-47 — Transcript, file page 9, lines 41-47
A citizen's guide to the whole case
What this case is about
The dispute centers on whether supplemental unemployment benefits are wages. The government says they are. Quality Stores says they are not.
Official sources for this section
- Official Supreme Court Transcript — file page 13, lines 17-31 — Transcript, file page 13, lines 17-31
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
How the case got here
The Supreme Court heard oral argument in this case on January 14, 2014.
Official sources for this section
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
What each side wants
The government wants the Court to classify these payments as wages.
Quality Stores wants the Court to classify these payments as exempt benefits.
Official sources for this section
- Official Supreme Court Transcript — file page 13, lines 17-31 — Transcript, file page 13, lines 17-31
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
What each side says
The government argues these payments fit the broad definition of wages.
Quality Stores argues these payments meet the statutory definition of exempt benefits.
Official sources for this section
- Official Supreme Court Transcript — file page 13, lines 17-31 — Transcript, file page 13, lines 17-31
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
What the justices asked
Justice Alito asked why a prior distinction does not apply here.
Justice Kennedy asked if these payments are subject to FICA withholding now.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 29-33 — Transcript, file page 10, lines 29-33
- Official Supreme Court Transcript — file page 11, lines 7-15 — Transcript, file page 11, lines 7-15
- Official Supreme Court Transcript — file page 13, lines 33-35 — Transcript, file page 13, lines 33-35
- Official Supreme Court Transcript — file page 14, lines 43-47 — Transcript, file page 14, lines 43-47
- Official Supreme Court Transcript — file page 4, lines 51-7 — Transcript, file page 4, lines 51-7
- Official Supreme Court Transcript — file page 7, lines 31-37 — Transcript, file page 7, lines 31-37
- Official Supreme Court Transcript — file page 7, lines 47-47 — Transcript, file page 7, lines 47-47
- Official Supreme Court Transcript — file page 8, lines 11-13 — Transcript, file page 8, lines 11-13
- Official Supreme Court Transcript — file page 8, lines 19-23 — Transcript, file page 8, lines 19-23
- Official Supreme Court Transcript — file page 8, lines 3-5 — Transcript, file page 8, lines 3-5
- Official Supreme Court Transcript — file page 8, lines 47-9 — Transcript, file page 8, lines 47-9
- Official Supreme Court Transcript — file page 9, lines 41-47 — Transcript, file page 9, lines 41-47
Why it matters
This case determines how employers calculate payroll taxes. It affects the funding of Social Security and Medicare programs.
Official sources for this section
- Official Supreme Court Transcript — file page 13, lines 17-31 — Transcript, file page 13, lines 17-31
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
What happens next
This article currently covers the argument record. Use the official docket link for later case activity.
Official sources for this section
- Official Supreme Court Transcript — file page 10, lines 29-33 — Transcript, file page 10, lines 29-33
- Official Supreme Court Transcript — file page 11, lines 7-15 — Transcript, file page 11, lines 7-15
- Official Supreme Court Transcript — file page 13, lines 33-35 — Transcript, file page 13, lines 33-35
- Official Supreme Court Transcript — file page 14, lines 43-47 — Transcript, file page 14, lines 43-47
- Official Supreme Court Transcript — file page 3, lines 7-17 — Transcript, file page 3, lines 7-17
- Official Supreme Court Transcript — file page 4, lines 51-7 — Transcript, file page 4, lines 51-7
- Official Supreme Court Transcript — file page 7, lines 31-37 — Transcript, file page 7, lines 31-37
- Official Supreme Court Transcript — file page 7, lines 47-47 — Transcript, file page 7, lines 47-47
- Official Supreme Court Transcript — file page 8, lines 11-13 — Transcript, file page 8, lines 11-13
- Official Supreme Court Transcript — file page 8, lines 19-23 — Transcript, file page 8, lines 19-23
- Official Supreme Court Transcript — file page 8, lines 3-5 — Transcript, file page 8, lines 3-5
- Official Supreme Court Transcript — file page 8, lines 47-9 — Transcript, file page 8, lines 47-9
- Official Supreme Court Transcript — file page 9, lines 41-47 — Transcript, file page 9, lines 41-47
Official Court provenance
Official docket and case history · Official Supreme Court oral-argument detail page
Title and summary sources
- Official Supreme Court Transcript — file page 13, lines 17-31 — Transcript, file page 13, lines 17-31
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
- Official Supreme Court Transcript — file page 13, lines 17-31 — Transcript, file page 13, lines 17-31
- Official Supreme Court Transcript — file page 3, lines 19-49 — Transcript, file page 3, lines 19-49
Revision history
- Revision 1 · Official Transcript ·
Correction: Rewritten to the concise citizen-facing editorial standard.
- Revision 2 · Official Transcript ·
Correction: Migrated to the dated official Court activity contract without model use.