The Federal Circuit recently issued its opinion in the Cencast Services case. Cencast Services is a payroll service company that handled the payroll function for various motion picture and television production companies. The employees often work for multiple companies over the course of the year. It is well-established law that payroll service companies are “statutory employers” and obligated to withhold and remit payroll taxes, even though they are not the “common law employers” of the employees. The primary issue in Cencast Services was the application of the wage caps for federal unemployment tax (FUTA) and the employer portion of FICA taxes.