FICA Taxation of Students
July 1, 1995
March 1, 1998
The IRS Tax Code provides an exemption from FICA to students employed at colleges and universities where they are "enrolled and regularly attending classes." The IRS has recently clarified this exemption in Rev. Proc. 98-16. Creighton University will allow the exemption for undergraduate students who are enrolled at least half-time, or for graduate or professional students who are carrying at least a half-time academic load. The FICA exemption does not apply to a student employee who is not enrolled in classes during school breaks (including summer breaks) of more than five weeks. For hours worked during breaks of less than five weeks, the student must have been enrolled in the prior term and be registered in the succeeding term. The exemption also does not apply to students deemed to be "career employees" as defined by IRS.
The Payroll Office will monitor the enrollment status on a pay period by pay period basis and make any modifications to the exemption status necessary for each pay period.