Updated: September 2008
The Internal Revenue Code imposes a tax on employers and employees referred to as the Federal Insurance Contributions Act (FICA). The Code, however, contains a number of exceptions to the FICA tax, one of which exempts services performed for a college or university by a "student who is enrolled and regularly attending classes" at the institution.
A student employee of James Madison University is eligible for this exemption if the following conditions are met:
The FICA exemption is eligible to the student employee who starts to work a month or less before the semester in which he/she is enrolled as a half-time student or more. The exemption is also available for the student employee who completes working for JMU within a month of the completion of the semester in which he/she was enrolled as a half-time student or more.
The FICA exemption is not eligible for a student employee during summer break if he/she is not enrolled at James Madison University on at least a half-time basis during the summer semester.
The FICA exemption does not apply to any other University break if that break extends more than five weeks in length.
A student employee status as half-time will be determined at the end of the drop-add period each semester.
If you have questions in regard to this Internal Revenue Code, contact Payroll Services at 540/568-6233.