If a graduate student is employed by UCI, salary for services rendered is paid to the student by the UCI Payroll system. Payroll income is subject to tax withholding for all employees. This withholding is reported to State and Federal tax agencies. Toward the end of January each year, students will receive a W-2 Form from the UCI Accounting Office which lists earnings paid to you by UCI in the previous calendar year, and the associated taxes withheld. UCI sends all employees an
informational memo each year about their W-2 forms. The W-2 should be attached to your income tax return when you file. Any
fees and/or tuition paid as remission on your behalf, as a benefit of UCI employment either as a Teaching Assistant, Teaching Associate, Reader, Tutor, Graduate Student Researcher (GSR), or Graduate Student Assistant Researcher (GSAR), is not considered taxable income and does not need to be reported on a student’s tax return.
Some students may be exempt from Federal Insurance Contributions Act (FICA) taxes as provided under section 3121 (b) (10) of the Internal Revenue Code. Under this section, services performed by a student in the employ of a college or university are generally exempt from Social Security (OASDI) and DCP/Medicare, the two components of the FICA tax, provided that the student is “enrolled and regularly attending classes”.
The IRS interpretation of this section provides that a student employee will be exempt from FICA taxes if the student is enrolled at least half-time, in accordance with the regulations issued by the Department of Education.
For more specific information, please refer to the UCI Payroll website section
on Student FICA Withholding Procedures.
