Saturday, September 4, 2004

Jon Jensen has published Reducing the Employment Tax Burden on Tenure Buyouts, 80 N.D. L. Rev. 11 (2004). Here is the Conclusion:

The Eighth Circuit has recognized that the unique nature of tenure that gives rise to the existence of a property interest. Tenure provides faculty members with the freedom of expression essential to the free exchange of ideas and encourages the development of new ideas without the fear of retribution against the faculty member. It is the unique nature of tenure that compels the conclusion that the purchase of a faculty member’s tenure is not a remuneration for services but is instead the purchase by the institution, from the employee, of a valuable property interest. As such, a payment made to purchase a faculty member’s tenure is not “wages” and is not subject to FICA taxation.