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. 

TermRoleCredit hours
Fall or spring — sessions A, B or CUndergraduateSix or more hours
GraduateFive or more hours
Graduate assistantThree or more hours
Summer — sessions A, B or CUndergraduate, graduate and graduate assistantTwo 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.