FICA Tax Withholding

The Internal Revenue Code (26 U.S. Code § 3101) [PDF] imposes on employers the responsibility to withhold Social Security and Medicare taxes from the wages of employees working in the United States. Collectively, these taxes are known as Federal Insurance Contribution Act taxes or "FICA" taxes. The FICA tax rates are currently:

• Social Security: 6.2% on the first $160,200 in wages earned in 2023. There is no Social Security withholding on wages earned over $160,200 in 2023. The Social Security withholding deduction is shown on your pay statement under the Employee Paid Deductions category as SS_EE.
• Medicare: 1.45% on the first $200,000 in wages earned in a calendar year, 2.35% on wages earned over $200,000 in a calendar year. The Medicare withholding deduction is shown on your pay statement under the Employee Paid Deductions category as Medicare_EE.
  

WVU matches both the 6.2% Social Security withholding as well as the 1.45% base Medicare withholding. These employer matches are shown on your pay statement under the Employer Paid Deductions category as SS_ER and Medicare_ER respectively. Employers are not required to match the additional 0.9% Medicare withholding on wages earned over $200,000.

Most wages earned by an employee while working in the United States are subject to FICA withholding. However, there are two exemptions for which employees at WVU may qualify. WVU reviews all employees each pay cycle to determine their eligibility for exemption from FICA withholding. Employees that qualify for exemption will have it automatically applied. No action is required on an employee's part to receive an exemption for which they qualify.

1. Nonresident Alien FICA Exemption: Foreign nationals in F-1 or J-1 nonimmigrant status with a tax status of nonresident alien (NRA) in a calendar year are exempt from FICA withholding on employment wages. The NRA FICA exemption applies to both on-campus student employment and on- or off-campus employment for practical or academic training.
   
1. Note: If the tax status of a foreign national in F-1 or J-1 status changes from nonresident alien to resident alien in the middle of a calendar year, or if they change to a status that does not qualify for the NRA FICA exemption (e.g., H-1B or lawful permanent resident) they will be required to pay FICA taxes if they do not meet the enrollment requirements for the student FICA exemption listed above. This may include back taxes on wages previously earned if the wages should not have been exempt from FICA withholding.
2. Student FICA Exemption: Wages paid to student workers and graduate assistants who meet the minimum credit hour enrollment requirement for a semester. The minimum credit hour enrollment requirement varies based on both the semester as well as a student's educational level (i.e., undergraduate or graduate).
   
1. Note: The student FICA exemption only applies to on-campus employment by WVU. Wages earned from off-campus employment for organizations other than WVU may still be subject to FICA withholding.