UNIVERSITY PAYROLL STUDENT EMPLOYMENT POLICY

Section 3121(b)(10) of the Internal Revenue Code exempts students enrolled and regularly attending classes from being required to pay FICA tax. The services that exempt students perform must be incident to and for the purpose of pursuing a course of study. (FICA is commonly referred to as Social Security Tax.)

Student Employment Semester Hours Policy In order to be eligible for the exemption from FICA during the Fall and Spring semesters, undergraduate students must be enrolled for a minimum of twelve semester hours. Graduate students must be enrolled for a minimum of nine semester hours. An exception to this rule is granted for students who need fewer semester hours in order to graduate.

During the Summer Session, the semester hours required for eligibility are three for undergraduates and six for graduate students.

Students must be enrolled at the University of Virginia. Students enrolled at other institutions are not eligible for the FICA exemption for employment at the University of Virginia.

UHR Payroll Division and the student information system will be matched during the course of each semester to ensure that student employees are enrolled for the requisite number of semester hours. Student employees falling below the threshold will have their FICA status changed unless there are extenuating circumstances.

University of Virginia College at Wise will be responsible for monitoring adherence to the semester hour policy.

Salaried Employee Ineligible for FICA Exemption Salaried faculty and salaried classified employees are not eligible for the FICA exemption regardless of the number of hours for which they are enrolled. The reason for this policy is that it is presumed that salaried employees are primarily employees and not students. Their presence at the University is not incident to and for the purpose of pursuing a course of study.

Changing Status of Persons Ineligible for FICA Exemption Student employees found to be ineligible for the FICA exemption fall into two categories and their status determines how they are treated. The categories are enrolled employees who are enrolled less than the requisite semester hours and those who are no longer or never were University of Virginia students.

Student Employees Who Do Not Meet The Criteria for FICA Exemption: These students remain as student employees but their FICA status must be changed.

Student Employees Who Are No Longer Enrolled Or Who Never Were UVa Students: This situation can occur when a former student drops out of school or when a student of another institution is erroneously hired as a student employee when they are not eligible for such employment. The employment of student employees in this situation must be terminated. Rehiring these persons must be through the normal University Human Resources hourly wage employee hiring process.

Current July 1, 1999