Which of the following items is correctly defined as taxable wages under FICA?

Severance pay is classified as taxable wages under FICA (Federal Insurance Contributions Act) because it is considered compensation for services rendered by the employee. FICA taxes apply to wages paid for employment purposes, which includes various forms of compensation, and severance pay falls into this category as it compensates an employee for their job termination.

In contrast, the value of meals furnished for employee convenience does not count as taxable wages under FICA, as these are often considered a tax-free fringe benefit. The value of meals provided for the employer's convenience can also be a non-taxable benefit under specific circumstances, making them distinct from wages. Lastly, awards for productivity improvement may not always be taxable depending on the context and amount, particularly if they meet certain criteria for de minimis fringe benefits. Therefore, severance pay stands out as the clear choice when identifying taxable wages under FICA.