Student FICA

What are FICA taxes? FICA stands for Federal Insurance Contributions Act. FICA consists of two different programs Old Age Survivors Disability Insurance (6.2%) and Medicare (1.45%). OASDI is also sometimes referred to as Social Security.

IRS ruled on January 16, 1998 that students who are employed by their college or university do not have to pay FICA taxes if they attend classes at least half time [Code of Federal Regulation 31.3121(b)(10)-2]. There is no limit on the number of hours a student works; however, we would prefer that the student not be appointed with a total FTE greater than .75.

To be exempt from paying FICA, a student must be in a student title and be enrolled as follows:

Undergraduate Students: Must be enrolled in at least 6 hours in the fall and spring. Must be enrolled in at least 3 hours during the summer.

Graduate Student: Must be enrolled in at least 5 hours in the fall and the spring. Must be enrolled in at least 2 hours in the summer.

A graduate assistant whose appointment is at least 0.50 FTE must be enrolled in a minimum of six hours in
the fall or spring terms and three hours in the
summer session to be classified as a full-time student.
A graduate assistant whose appointment is less than 0.50
FTE must be enrolled in a minimum of nine hours in
the fall or spring terms and four hours in the Summer
Session to be classified as a full-time student.
If a graduate assistant's enrollment falls below the
minimum required, he or she is no longer considered
a full-time student and is no longer eligible for an
assistantship.

International Students: Subject to the same Immigration and Naturalization regulations which requires them to maintain a full time course load and work no more than 20 hours per week when school is in session. International students attending the university can work up to full time when school is not in session; i.e. summer and holidays [Title 8 Code of Federal Regulation 214.2(f)(9)(i)], if they intend to register for the subsequent academic term. However, when an international student meets substantial presence, they become a resident alien for tax purposes and could be subject to FICA taxes.