Student Employee Federal Insurance Contributions Act (FICA) Exception

This is intended for the purpose of informing University of Illinois System employees and other U of I System-related individuals about relevant tax issues. This information does not constitute legal or tax advice. Individuals should consult with their attorneys or tax professionals for advice on personal issues.

Certain student employees can qualify for an exception from FICA withholdings. The Internal Revenue Code (IRC) §3121(b) provides an exception for students from the Federal Insurance Contributions Act (FICA), which consists of Social Security and Medicare withholdings. Revenue Procedure (Rev. Proc.) 2005-11 provides a safe harbor where certain students can qualify for the Student FICA exception.

The Student FICA exception also applies to students enrolled during school breaks of five weeks or less if the student was both:

1. Eligible for the exception on the last day of classes or examinations prior to the break
2. AND is eligible for enrollment for the first academic period following the break.

The Student FICA exception includes the university's winter and spring breaks.

Details about the Student FICA exception can be found in policy 18.4 Student Employee FICA Exception.