FICA Exemption
Graduate assistants currently enjoy an exemption from paying the Federal Insurance Contribution Act (FICA) tax. The exemption is given by IRS Revenue Procedure 98-16 because graduate students are considered students, not employees of the University. The FICA exemption amounts to 7.65% of gross pay, equating to a savings of $1,084 for a graduate student holding a half-time, grade 12 assistantship during academic year 2004-05