Federal Insurance Contributions Act (FICA)

Regulation Reference Cite 42 U.S.C. §§ 401-434: 26 C.F.R. § 31; 6 U.S.C. §§ 3101-3128; 26 C.F.R. § 31; 26 C.F.R. 31.6302.1 et seq.
Report Due Date (Actual) N/A
Level Requirement
Oversight Unit HUMAN RESOURCES
Person Responsible Rhea Dever
Secondary Person Responsible
President / VP Level Finance
Description

Provides that service performed in the employ of a school, college or university by a student who is enrolled and regularly attending classes at such school, college, or university is exempt from the FICA tax. An employee who is in employment for wages which are subject to taxes under the Federal Insurance Contributions Act (FICA) or which are subject to the withholding of income tax from wages must apply for a social security number by filing SSA Form SS-5. An employer must pay social security taxes on employees, but an exemption exists for most students who are also working for the university and for clergy whose services are performed in the exercise of their ministry.

FICA defines which employers and employees are subject to taxation and levies the tax. Provides that service performed in the employ of a school, college, or university by a student who is enrolled and regularly attending classes at such school, college, or university is exempt from the FICA tax. An employer must pay social security taxes on employees but an exemption exists for most students also working for the university and for clergy whose services are performed in the exercise of their ministry.

Contacts and Data Sources

For 2022, the FICA tax rate for employers is 7.65% — 6.2% for Social Security and 1.45% for Medicare (the same as in 2021). For 2022, an employee will pay: 6.2% Social Security tax on the first $147,000 of wages (6.2% of $147,000 makes the maximum tax $9,114), plus.