Public University W2's

[Hanover Jim]

Universities that employ students very often do not withhold SS or Medicare. This is all reflected on the W2. There are simply Wages(Box 1) and Fed Tx WH(Box 2). Is this a situation where we need to complete Form 8919 (or some other form) or do we simply ignore it.

[imjulier]

For me here in Colorado, I ignore it because these are state employees that are covered by a plan set up by the state called "PERA". But this only takes the place of SS and not medicare. I would guess this might be different by state.

Julie

[Bart]

Universities that employ students very often do not withhold SS or Medicare. This is all reflected on the W2. There are simply Wages(Box 1) and Fed Tx WH(Box 2). Is this a situation where we need to complete Form 8919 (or some other form) or do we simply ignore it.

Students employed by a University can be exempt from social security and medicare. I can't find the IRS code section but it is listed that way in the circular E.

Also, here is an article from the University of Wisconsin.

A student employee is defined by the Internal Revenue Service as an employee of a college or university whose work is "incident to and for the purpose of pursuing a course of study" at that college or university. Student employees are exempt from Social Security and Medicare (FICA) taxes under certain conditions.

Examples of student employee position titles that may qualify include: program assistant, project assistant, teaching assistant, and student help.

(Note: recipients of fellowships and similar grants are also exempt from FICA taxes, but for a different reason. They are not considered employees, even though all or part of their stipend is considered taxable income, and the conditions outlined here do not apply to them.)

A student employee of the University of Wisconsin is exempt from FICA taxes if he or she is enrolled and attending classes as a graduate or undergraduate student at the University of Wisconsin on at least a half-time basis. Half-time status is defined by each institution and is determined at the end of the add/drop period each semester.