Financial Administration

Student FICA Exemptions (G18A) Attachment 2

April, 2000


ASSUMPTIONS USED IN THE FOLLOWING EXAMPLES:

  1. The student-employe qualified for the Student FICA exemption on the last day of the spring term. Assume that the academic spring term ends 5/13, and the fall academic term begins 8/21.

  2. Various Summer Sessions are offered:
    8 Week Summer Session (6/12 - 8/5)
    4 Week Summer Session (6/12- 7/8)
    4 Week Summer Session (7/10 - 8/5)
    3 Week Summer Session (5/22 - 6/10)

  3. Student Bi-Weekly Summer Payroll Schedule:
    May B: (5/14 - 5/27)
    June A: (5/28 - 6/10)
    June B: (6/11 - 6/24)
    July A: (6/25 - 7/8)
    July B: (7/9 - 7/22)
    Aug A: (7/23 - 8/5)
    Aug B: (8/6 - 8/19)

  4. The student works for the University during a summer session.

EXAMPLE 1:

8 Week Summer Session (6/12 - 8/5)
If the student-employe is enrolled in the 8 Week Summer Session (6/12-8/5), and plans to enroll on a half-time or greater basis in the fall academic term beginning 8/21, the Student FICA exemption would remain in effect the entire summer. The break between the conclusion of the spring term, 5/13, through 6/11, does not exceed a 5 week break as explained in Section II E., Summer Breaks. The break between the conclusion of the 8 Week Summer Session, 8/5, and the beginning of the fall term, 8/21, also does not exceed 5 weeks.

Conclusion: The Student FICA exemption would be in effect from the pay period beginning 5/14 and remain in effect through pay period ending 8/19.

EXAMPLE 2:

4 Week Summer Session (6/12 - 7/ 8)
If the student-employe is enrolled in the 4 Week Summer Session, beginning 6/12, and plans to enroll in the fall academic term, the Student FICA exemption would remain in effect from the conclusion of the spring term, 5/13, through the conclusion of the 4 Week Summer Session, 7/8.

The break between the conclusion of this 4 Week Summer Session, 7/8, and the beginning of fall academic year, 8/21, is greater than 5 weeks. FICA withholding would begin after 7/8. See Section II E., Summer Breaks for an explanation of the 5 week break rule.

Conclusion: The Student FICA exemption would be in effect from the pay period beginning 5/14 through pay period ending 7/8. FICA taxes would be withheld beginning 7/9 through 8/19.


EXAMPLE 3:

4 Week Summer Session (7/10 - 8/5)
If the student-employe is enrolled in the 4 Week Summer Session, beginning 7/10, and plans to enroll in the fall academic term, 8/21, the Student FICA exemption would end upon the conclusion of the spring academic term, 5/13. The exemption would begin again 7/9, and would remain in effect until the beginning of the fall academic term because the break in classes does not exceed 5 weeks or more.

Conclusion: FICA taxes would be withheld for the pay period beginning 5/14 through pay period ending 7/8. The Student FICA exemption would begin for the pay period beginning 7/9 and remain in effect through pay period 8/19.


EXAMPLE 4:

3 Week Summer Session ( 5/22 - 6/10) If the student-employe is enrolled in the 3 Week Summer Session, beginning 5/22, and plans to enroll in the fall academic term, 8/21, the Student FICA exemption would end upon the conclusion of the 3 Week Summer Session, 6/10. The Student FICA exemption would remain in effect from the conclusion of the spring academic term, 5/13, until 6/10.

The period of time between the conclusion of the 3 Week Summer Session, 6/10, and the beginning of the fall academic term, 8/21, FICA would be withheld. The Student FICA exemption could resume 8/21, providing the student returns on a half-time or greater basis.

Conclusion: The Student FICA exemption would be effect from pay period beginning 5/14, through pay period ending 6/10. From pay period 6/11 through pay period 8/19, FICA taxes would be withheld.


EXAMPLE 5: Enrollment in multiple summer sessions student-employes who enroll in multiple summer sessions must be evaluated on a case by case basis. For example, a student-employe may choose to take classes in the 3 Week Summer Session (5/22 - 6/10) and also enroll in the 4 Week Summer Session commencing on 7/10. This variation could result in the Student FICA exemption for the entire summer.