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 lea
