What are the requirements for being FICA Exempt?
Student employees may be exempt from FICA taxes under the Student FICA Exception of the IRS Code Section 3121(b)(10). In order to be exempt from FICA the student must be enrolled part time in a degree seeking program. Part time is 6 credit hours for undergraduates and 5 credit hours for graduates. A student may also be considered half time for the FICA exemption while they are in their final semester and enrolled in the number of credit hours needed to complete the degree requirements, including dissertation and thesis hours. Additionally, the student cannot work full time and still receive exemption except during scheduled academic breaks (finals week is not an academic break).
