Consider the following and provide thoughtful analysis and reflection: Your company has undergone extensive layoffs over the past fiscal year, and your CFO wants to know if the company has to collect or pay FICA and FUTA taxes for severance payments to laid-off workers. You remember reading some articles by D. P. Letsch in the Journal of Accountancy dealing with this subject. Find those articles and update the findings with new tax research to include updates to the tax code or regulations since the article was written and an update on the case law was made dealing with this subject. Prepare your research based on the material included in your textbook.

For discussion: Based on your credible research and analysis, what are the implications of your findings to companies with high employee turnover?