Student Wage Tax Reporting
Wages paid to a student employee through the payroll system are subject to federal income tax, state income tax and FICA — Social Security and Medicare.
The withholding of federal and state taxes depends on the student’s biweekly gross income and how they file their Form W-4 and state withholding forms. A student may seek advice from the Internal Revenue Service about how to file the Form W-4 or advice from their resident state about how to complete their state withholding form.
Contact the IRS toll-free at 800-829-1040 or use the Tax Withholding Estimator tool.
FICA exemption eligibility
FICA withholding is based on the number of credit hours a student is enrolled for at the end of the drop or add period. Students must be enrolled at least half-time for FICA exemption eligibility.
| Term | Role | Credit hours |
|---|---|---|
| Fall or spring — sessions A, B or C | Undergraduate | Six or more hours |
| Graduate | Five or more hours | |
| Graduate assistant | Three or more hours | |
| Summer — sessions A, B or C | Undergraduate, graduate and graduate assistant | Two or more hours |
| FICA exemptions do not apply if breaks between classes is over five weeks. | ||
Graduate assistants: For enrollment verification purposes, “graduate assistant” is a generic term used in the table above. It includes graduate research assistants or associates and graduate teaching assistants or associates.
F-1 and J-1 status nonresident student exemption
A nonresident student in the United States on an F-1 or J-1 visa remains in a FICA tax-exempt status regardless of the credit hour enrollment requirement until they have been present in the U.S. more than four calendar years.