Our institution does not deduct Social Security taxes if the student is
enrolled at least half time. This includes students paid from grant funds.

I haven't looked for the IRS ruling, but I did save the page published in the
1/19/98 Chronicle of HIgher Education that says:

 "Students who are employed by their colleges do not have to pay Social
Security taxes if they are enrolled at least half time, the Internal Revenue
Service ruled Friday. The decision, which reverses the I.R.S.'s earlier
stance, could save millions of dollars at colleges that had begun withholding
the tax from the wages of part-time students."

Laurie Chamness

"Ballard, Gamaliel L." wrote:

>  Dear Res. Admin.
>
>  1. Should social security taxes be deducted from a graduate student's
> salary when the student is a full time student and hired on a research
> grant?
>
>  2. Are full time students exempt from paying social security taxes?
>
>   Thank you
>
>   G.L. Ballard
>   Assoc. Director
>   ORSS/Meharry Medical College
>   615-327-6703
>
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--

Laurie P. Chamness                   Phone:  (843) 953-4973
Assistant Director                   Fax:  (843) 953-6577
Research & Grants Admin              E-mail:  xxxxxx@cofc.edu
College of Charleston
66 George Street
Charleston, SC  29424

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