STUDENT FICA EXEMPTION

Texas A&M University students who work for the University or other agencies within the TAMU System are exempt from Social Security and Medicare coverage effective July 1, 2000. "Take home" pay for eligible student employees will increase by the amount previously deducted (7.65%). Federal income tax is still withheld as appropriate.

In order to be considered eligible, students must be enrolled at least half-time at Texas A&M. The law allows each institution to define half-time. TAMU uses the definitions set forth by the Registrar.

Work performed during school holidays and breaks between academic periods is eligible for the exemption if:

  • The break is less than 5 weeks long, and
  • The student is enrolled or eligible to enroll in the first academic period following the break.

However, if the break is longer than 5 weeks or the student is not enrolled or eligible to enroll in the next academic period, the student will not be eligible for the FICA exemption. Therefore, it is possible (or even probable) that a student employee will have some wages that were subject to FICA taxes and some that wages that were exempt from FICA taxes during the same year.

For more information, contact University Payroll Services at 979-845-2711, or visit their website to check your FICA Exemption Status.

 
Texas A&M is a member of the Texas A&M University System