**INACTIVE POLICY**

For Current Policies:
Policy Table of Contents

 

                      UNIVERSITY OF VIRGINIA
           FINANCIAL AND ADMINISTRATIVE POLICIES MANUAL



TITLE:  PAYROLL:  STUDENT EMPLOYMENT               POLICY:  XII.F.4x
                                                 
                                                                   

BACKGROUND

Section 3121(b)(10) of the Internal Revenue Code exempts
students enrolled and regularly attending classes from being
required to pay FICA tax.  The services that exempt students
perform must be incident to and for the purpose of pursuing a
course of study.  (FICA is commonly referred to as Social Security
Tax.)

STUDENT EMPLOYMENT SEMESTER HOURS POLICY

In order to be eligible for the exemption from FICA during the 
Fall and Spring semester, undergraduate students must be enrolled for
a minimum of twelve semester hours.  Graduate students must be enrolled 
for a minimum of nine semester hours. An exception to this rule is
granted for students who need fewer semester hours in order to graduate.

During the Summer Session, the semester hours required for eligibility
are six for undergraduates and three for graduate students.

Students must be enrolled at the University of Virginia. Students 
enrolled at other institutions are not eligible for the FICA exemption
for employment at the University of Virginia.

Payroll and the student information system will be matched during the
course of each semester to ensure that student employees are enrolled
for the requisite number of semester hours. student employees falling 
below the threshold will have their FICA status changed unless there
are extenuating circumstances.

Clinch Valley College will be responsible for monitoring adherence 
to the semester hour policy.

SALARIED EMPLOYEE INELIGIBLE FOR FICA EXEMPTION

Salaried faculty and salaried classified employees are not
eligible for the FICA exemption regardless of the number of
hours for which they are enrolled. The reason for this policy
is that it is presumed that salaried employees are primarily
employees and not students. Their presence at the University
is not incident to and for the purpose of pursuing a course 
of study.


CHANGING STATUS OF PERSONS INELIGIBLE FOR FICA EXEMPTION

Student employees found to be ineligible for the FICA exemption
fall into two categories and their status determines how they are
treated.  The categories are enrolled employees who are enrolled
less than the requisite semester hours and those who are no longer
or never were University of
Virginia students.

      STUDENT EMPLOYEES WHO DO NOT MEET THE CRITERIA FOR FICA
      EXEMPTION:  These students remain as student employees but
      their FICA status must be changed.

      STUDENT EMPLOYEES WHO ARE NO LONGER ENROLLED OR WHO NEVER
      WERE UVA STUDENTS:  This situation can occur when a former
      student drops out of school or when a student of another
      institution is erroneously hired as a student employee when
      they are not eligible for such employment.  The employment of
      student employees in this situation must be terminated. 
      Rehiring these persons must be through the normal Human
      Resources hourly wage employee hiring process.    


ISSUED BY:                                                 01/31/98

Assistant Comptroller for
Accounting Operations          12.6.4.1