Typically, most people who earn employee wages in the United States will have Social Security (FICA) taxes deducted from their paychecks. These taxes are intended to fund programs for disabled and retired workers. Aside from FICA taxes, Medicare taxes are also withheld from the wages of some employees. However, there are exceptions to the rules, such as the student FICA exemption.
The student FICA exemption applies to students who are enrolled in an institution and are working an eligible job. These exemptions are set in the Internal Revenue Code. These exemptions include students who work as instructors, researchers, or doctors. In addition, there is also an exemption for students who are not citizens of the U.S. Students who are foreign students, such as those who are visiting the United States on a J-1 or M-1 visa, are exempt from FICA taxes. Likewise, foreign students who are studying at a United States institution are exempt from FICA and Medicare taxes.
In order to receive the student FICA exemption, the employee must be enrolled in a class for the semester in which the exemption applies. To determine the student’s eligibility, the payroll system will compare the student’s enrollment records to the official records of the University. Students are considered enrolled in a class if they are registered for more than five credits. In addition, the student must be enrolled for more than five credits in a single academic quarter.
In order to qualify for the student FICA exemption, the student must be enrolled for at least six credit hours during the Fall and Winter terms. In addition, the student must have at least half-time status during the Spring and Summer terms. The student will not qualify for the exemption if he or she is not enrolled for a minimum of six credit hours during the Fall and Winter terms, as well as the Spring and Summer terms. Students who have less than half-time status will be taxed. The student is also subject to FICA taxes during school breaks. However, there is an exception to this rule for students who are enrolled in a class for the entire Summer term.
The student FICA exemption applies to all hours worked during the payroll period from August 20 through September 2. Students who are enrolled in a class for a full semester are exempt from FICA taxes for the entire Summer term. This exemption also applies to breaks when the institution is not offering classes. If a student fails to meet the required criteria for the student FICA exemption, he or she will lose the exemption. Students who are enrolled in a full-time class but do not qualify for the exemption can still receive the exemption during the break period.
When a student is employed by a University, the university is required to make wage payments to the student. In order to qualify for the student FICA exempt status, the wage payments must be made to a half-time professional or graduate student. This definition also excludes the services of postdoctoral fellows and medical interns. In addition, the student must be registered for a minimum of two credit hours during the Summer Quarter. A student can also work on or off campus, provided the services are related to the student’s course of study.