The Federal Insurance Contributions Act (FICA) describes the combined taxes withheld for Social Security (referred to as OASDI - Old Age Survivor and Disability Insurance - on your pay statement) and Medicare. Special FICA withholding rules apply to different employee groups.

Non-student employees are generally subject to FICA tax withholding. Social Security (OASDI) is withheld on taxable gross income up to a certain wage limit each year, but there is no wage limit for Medicare withholding. The current rates of withholding are 6.2 percent for OASDI and 1.45 percent for Medicare.

The University of Minnesota follows the IRS rules in determining whether a student is exempt from FICA withholding. The Internal Revenue Service (IRS) issued guidelines in Revenue Procedure 98-16 (Rev. Proc. 98-16) setting forth the standards to use to determine whether student employees are eligible for the "student FICA Exemption."

There are special IRS FICA withholding rules governing nonresident alien students and scholars in the following visa classifications: F-1, J-1, M-1 and Q-1.

Non-student Employee FICA Guidelines

Non-student employees at the University of Minnesota, with few exceptions, are generally subject to FICA tax withholding. FICA Wage and Tax Limits includes rates for current and previous years Social Security (OASDI) and Medicare.

Student FICA Tax Guidelines

The University of Minnesota follows the IRS rules in determining a student's exemption from FICA withholding. The Internal Revenue Service (IRS) issued guidelines in Revenue Procedure 98-16 (Rev. Proc. 98-16) setting forth the standards to use to determine whether student employees are eligible for the "student FICA Exemption."

• Graduate Student FICA Rules
• Undergraduate Student FICA Rules

For more information concerning the Student FICA exemption and Revenue Procedure 98-16, see the IRS - Student FICA Guidelines.

Nonresident Alien FICA Guidelines

Special IRS FICA withholding rules govern nonresident alien students and scholars in the following visa classifications: F-1, J-1, M-1 and Q-1. See the Nonresident Aliens FICA Exemption Rules for detailed information concerning the IRS regulations and eligibility for exemption from FICA tax.