Some Student Employees Must Pay Social Security

Certain students employed by the University of California will now be required to contribute to Social Security, says James Hensler, Director of Business Services. The requirement is the result of a recent Internal Revenue Service policy clarification.

Affected student employees will make a 7.5 percent contribution to the university's Defined Contribution Plan and a 1.45 percent contribution to Medicare.

To be exempt from making these contributions, student employees will have to meet both an employment test and a coursework test. Specifically, UC students who work on the Berkeley campus may have a combined total active work appointment percentage of no more than 50 percent.

UC undergraduate student employees must also be registered and enrolled in at least 12 units per academic term. UC graduate student employees must be registered and enrolled in at least 8 units per academic term or must be registered and advanced to doctoral candidacy. All non-resident alien F-1 and J-1 visa holders will be exempted from these requirements, regardless of unit enrollment or appointment percentages. Conversely, all non-UC students will be required to contribute without exception.

Hensler indicated that withholding will be implemented on the Berkeley campus in two stages.

Any student employees who hold combined active work appointments of over 50 percent will be subject to withholding against their April earnings (May check), regardless of their unit enrollment.

Then in May, the unit criterion will also be applied, and student employees who are not registered at Berkeley or another UC campus for the appropriate number of spring semester units (or advanced to doctoral candidacy) will also become subject to withholding against their May earnings (June check).

For detailed information on student employee contributions, refer to Hensler's memorandum to management services officers and administrative assistants dated March 29, 1995.

A copy of the memo may be obtained by calling 642-2851. Questions about the program may be directed to the Payroll Office at 642-0797 or 642-0801.


Copyright 1995, The Regents of the University of California.
Produced and maintained by the Office of Public Affairs at UC Berkeley.
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