What is the student FICA Exemption?
FICA is the Federal Insurance Contribution Act. This Act precludes students from participating in Social Security and Medicare coverage, based on enrolled number of credits. The Internal Revenue Service states that if the employment is “incident to” the education (i.e. the employee’s primary purpose for being here is to attend school), then the student retains the Student FICA Exemption. However, if the education is “incident to” the employment, then the student loses the Student FICA Exemption (i.e. permanent staff who are taking classes, and temporary non-student employees). If a student loses the exemption, then 6.2% is deducted for Social Security and 1.45% is deducted for Medicare. The College also matches Social Security and Medicare deductions on a dollar-for-dollar basis. The credit hour eligibility determination is six (6) or more credits for undergraduates, and four (4) or more credit hours for graduate students. In order to be eligible for the student FICA exemption, you mus
