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 |
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up to $94,200 in 2006) |
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| 2. |
Medicare (1.45% of gross taxable wages) |
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| 3. |
Federal Withholding Tax (see IRS Publication 15, |
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Employer’s Tax Guide) |
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Social Security and Medicare Tax
Undergraduate Student Employees
Criteria for Exemption Eligibility:
| 1. |
In order to be exempt from FICA tax, students |
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must be (1) enrolled in at least ½ time status at FAU, (2) regularly attending classes in the semester at FAU. |
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| 2. |
Students must be “scheduled” to work 32 hours |
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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). |
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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 |
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must be (1) enrolled in at least ½ time status at FAU, (2) regularly attending classes in the semester at FAU. |
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| 2. |
Students must be “scheduled” to work 32 hours |
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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). |
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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 |
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must be (1) enrolled in at least ½ time status at FAU, (2) regularly attending classes in the semester at FAU. |
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| 2. |
Students must be “scheduled” to work 32 hours |
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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). |
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| 3. |
The work performed must be incidental to |
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pursuing a degree. |
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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.
