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Summary

The University shall make payroll deductions for the Federal Insurance Contributions Act (FICA) (Social Security and Medicare), and make appropriate FICA contributions, for eligible employees, following governing regulations. Social Security and Medicare are federally mandated taxes withheld from employees' paychecks and a tax paid by the employer.

HR Policy Provisions

1. Determining Obligation
   
   1. All University employees participate in the Federal Social Security Program except:
      
      1. Extension employees having Civil Service Retirement;
      2. students enrolled in and regularly attending classes at the ÎçÒ¹Ó°Ôº whose primary purpose is to further educational objectives; and
      3. nonresident alien individuals who qualify for exemption from the social security tax under section 3121(b)(19).
   2. The department is responsible for determining the status of each of its employees and for initiating the necessary staff forms to establish individual employee participation status.
   3. If a change in student participation status will occur between a regular semester and a summer session or between a summer session and a regular semester, the department must process the necessary staff forms prior to the effective date of the change.
2. Deductions
   
   1. FICA taxes are deducted from eligible employee salaries not to exceed the taxable wage base.
   2. Employees who join the University will have taxes withheld at federally mandated rates without regard to the amount withheld in the calendar year by previous employers.
   3. Medicare taxes do not have a maximum, taxable wage base.
   4. An employee may claim a refund of excess deductions on their income tax return for that year.
3. Additional Information
   
   1. As required by law, the University furnishes each employee with a Form W-2, which shows the amount of Social Security tax withheld, and the amount of earnings subject to the Social Security tax.
   2. Information regarding Social Security benefits and other aspects of the Social Security Program is available through the employee's local Social Security Administration Office.

See Also

HR-222 Payroll Deductions

Date Created: 09/26/1997
Updated: 01/01/2003; 07/15/2020