Tax Guidelines – Student Employees

Several components determine an individual’s particular taxation such as the way the W-4 Card is completed, citizenship status, age, student enrollment status and multiple employment that results in a dual compensation situation.

In the State of Florida, there are 3 taxes that must be addressed during employment:

1.       Social Security (6.20% of gross taxable wages up to $102,000 in 2008)
2.       Medicare (1.45% of gross taxable wages)
3.       Federal Withholding Tax (see IRS Publication 15, Employer’s Tax Guide)

Social Security and Medicare Tax

Undergraduate Student Employees

        Criteria for Exemption Eligibility:

1.       In order to be exempt from FICA tax, students must be (1) enrolled in at least ½ time status at FAU, (2) regularly attending classes in the semester at FAU.

2.       Students must be “scheduled” to work 32 hours or less in order to have FICA exception. A schedule is determined by the employing department and submitted to Student employment via a Student appointment form (SAP).

Failure to meet the above criteria will result in the student paying Social Security (6.20%) and Medicare (1.45%) tax on the taxable gross paid for the pay period. Each department is responsible for the employer-matching portion of the tax and it will come out of the same funding department being charged for the student’s salary.

Graduate Student Employees

        Criteria for Exemption Eligibility:

1.       In order to be exempt from FICA tax, students must be (1) enrolled in at least ½ time status at FAU, (2) regularly attending classes in the semester at FAU.

2.       Students must be “scheduled” to work 32 hours or less in order to have FICA exception. A schedule is determined by the employing department and submitted to Student employment via a Student appointment form (SAP).

 Failure to meet the above criteria will result in the student paying Social Security (6.20%) and Medicare (1.45%) tax on the taxable gross paid for the pay period. Each department is responsible for the employer-matching portion of the tax and it will come out of the same funding department being charged for the student’s salary.

Doctoral Students

         Criteria for Exemption Eligibility:

1.       In order to be exempt from FICA tax, students must be (1) enrolled in at least ½ time status at FAU, (2) regularly attending classes in the semester at FAU.

2.       Students must be “scheduled” to work 32 hours or less in order to have FICA exception. A schedule is determined by the employing department and submitted to Student employment via a Student appointment form (SAP).

3.       The work performed must be incidental to pursuing a degree.

 Failure to meet the above criteria will result in the student paying Social Security (6.20%) and Medicare (1.45%) tax on the taxable gross paid for the pay period. Each department is responsible for the employer-matching portion of the tax and it will come out of the same funding department being charged for the student’s salary.