To: Business Managers, Campus Unit Finance Leads, HR Council and Secondary Contacts
From: Walter Miller, Director of Payroll Services
This memo serves to remind campus of certain guidelines surrounding enrollment and the student FICA exemption on payroll wages.
In order to be exempt from having FICA taxes withheld on payroll wages per Policy 1111 – Student Employee FICA Exemption, student employees must be enrolled at least half-time in coursework during the compensated pay period. Please note that being in a student job code is not sufficient to qualify for the FICA exemption.
Additionally, full-time and career employees who are enrolled students do not qualify for the student FICA exemption since their primary relationship to the University is that of an employee.
For further details on this topic, please refer to Policy 1111 – Student Employee FICA Exemption, Related Document 1111.1rd, and IRS Revenue Procedure 2005-11.