FICA (Social Security and Medicare) taxes do not apply to service performed by students employed by a school, college or university where the student is pursuing a course of study. Whether the organization is a school, college or university depends on the organization¡¯s primary function. In addition, whether employees are students for this purpose requires examining the individual¡¯s employment relationship with the employer to determine if employment or education is predominant in the relationship.
Additional information
- Treasury Decision 9167 PDF: Final regulations published December 21, 2004.
- Revenue Procedure 2005-11: Safe harbor standards that colleges and universities can apply in determining if an employee is eligible for the student FICA exception.
- United States v. Mount Sinai Medical Center (11th Cir. May 11, 2007) PDF: Recent appellate court decision on whether medical residents are students within the meaning of the student FICA exception.