The IRS has released guidelines (Revenue Procedure 98-16, IRB 1998-5, 19, January 16, 1998) to assist schools to determine what wages are FICA taxable and clarifying the definition of “student employee”. Effective the pay period beginning May 11, 1998, San Jacinto College will use the following definitions and treatment concerning student employees:
The student employee must be enrolled and regularly attending classes at San Jacinto College. During the fall and spring semesters, the student employee must be taking a course load of at least six (6) credits or the comparable hours in a clock hour program. The determination of student status will be made at the end of the add-drop period. The student employee should work less than half-time during any pay period, generally no more than 19.5 hours per week. Student employees may work more than half-time, and retain all exemptions, if it is a condition of their employment that they be enrolled as a student. A student employee is exempt from participating in the part-time employee retirement plan and payment of the Medicare tax.