Buyouts of tenured faculty not subject to Social Security tax.(PAYROLL TAXES)

Buyouts of tenured faculty aren't subject to Social Security tax. Over the years, a university sponsored several early-out programs for tenured faculty members and nontenured librarians to cut expenses. To participate, teachers who were tenured had to relinquish those rights.

The early-out payments were not made for services, a court says. The professors were paid to forfeit their right to guaranteed employment. So payme