I think this has come up before, but ...
My University has just decided to adopt a policy in which all student
employees in the summer are treated as "Temporary Employees" rather
than as "Student Employees."  The most immediate effect of this will
be that fringe benefits for student assistantships charged to grants
will increase from 0.6% to 8.4%.  Naturally this increase is not
provided for in any of out existing grants (nor any currently pending
proposal).
The reason given is two-fold.  1) New IRS regulations regarding FICA
payments for student workers (I am told they MSUT be currently
registered to be considered students and so not pay FICA/FUET) and 2)
the payroll office doesn't want to do the extra work of converting
student employees back and forth when they are employyes for the
entire summer, but are not enrolled continually in classes.

I am interesting in learning what policies other institutions have
regarding the payment of FICA (or other fringes) for "student"
employees.

 Richard H. Moore
 Assistant Vice President for Grants and Sponsored Research
 and Professor of Biology

Coastal Carolina University                E-MAIL: xxxxxx@coastal.edu
P.O. Box 1954                              VOICE: (803) 349-2050
Conway SC 29526                            FAX: (803) 349-2990