Issued: February 1, 1995
Revised: April 9, 1998
Effective: January 5, 1998

A. Purpose

Explain policy and procedures concerning the FICA exemption for undergraduate and graduate students participating in the Work Programs.

B. Scope

Applies to all undergraduate and graduate students receiving compensation from the Work Programs.

C. Policy

Compensation paid to students participating in the Work Programs may be exempt from FICA (Social Security and Medicare) withholding taxes. To qualify for the exemption, a student must be enrolled at least on a half-time basis.

D. Procedures

1. The Work Programs for undergraduate students include the federal work-study and work scholarship programs. For graduate students, the Work Program includes the federal work-study program.
2. A half-time student for Fall and Spring semesters is defined as either an undergraduate or graduate student enrolled in at least 6 or 5 credit hours a semester, respectively.
   
   For summer school, an undergraduate student will be considered half-time for:
   • the current semester if enrolled in at least three credit hours during Maymester, Summer School I or Summer School II, or six credit hours during Summer School III.
   • Summer School I if enrolled in a combination of three credit hours during Maymester and Summer School I. The student must be enrolled Summer School I.
   • Summer School III if enrolled in a combination of six credit hours during all summer school sessions. The student must be enrolled Summer School III.
   For summer school, a graduate student will be considered half-time for:

   • the current semester if enrolled in at least three credit hours Maymester, Summer School I or Summer School II or five credit hours Summer School III.
   • Summer School I if enrolled in at least three credit hours in a combination of Maymester, Summer School I and/or Summer School III. The student must be enrolled Summer School I.
   • Summer School II if enrolled in at least three credit hours in a combination of Summer School II and Summer School III. The student must be enrolled Summer School II.
   • Summer School III if enrolled in at least five credit hours in a combination of all summer school sessions. The student must be enrolled Summer School III.
   • Summer School I and Summer School II if enrolled in at least five credit hours in a combination of all summer school sessions.
3. The enrollment hours will be verified by the Payroll Office for all students in a Work Program position for each semester or summer school session as of the census date. If a student is not enrolled at least half-time, FICA taxes will be withheld and will continue for the remainder of the semester or summer school session.
4. An exception to the half-time enrollment requirement will be granted for students that need fewer hours in order to graduate in the current semester or summer school session. Notification of pending graduation must be sent to the Payroll Office in order to be granted this exception. A "Tentative Graduate Form" for this exception must be completed and submitted to the Payroll Office.
5. Student employees are allowed to work multiple positions on campus. If a student is determined to be a career employee, then all positions for that student will be deemed FICA taxable. All positions for each student will be reviewed for FICA taxability.
   
   NOTE: Until an automated system which will track multiple payrolls is developed, this policy cannot be implemented. Manual detection is too labor intensive and is not cost effective. However, for any student who is detected, the policy will apply.
6. For students with an F-1 visa, see FICA Exemption for Students with an F-1Visa policy.