New Student FICA Tax Exemption Policy

1
Welcome

• New Student FICA Tax Exemption Policy
• Information Session
• Carrington Hall, room 9
• December 1, 1999
• 130 - 330 PM

2
New Student FICA Tax Exemption PolicyAGENDADecem
ber 1, 1999

• Introductions and Overview Eddie Capel
• History of Policy Change Eddie Capel
• Overview of New Policy Dennis Press
• New Payroll Process Eddie Capel
• Wrap-Up and Questions Panel

3
New Student FICA Tax Exemption PolicyIntroductio
ns and Overview

• Introduce Presenters
• Review Agenda

4
New Student FICA Tax Exemption PolicyHistory

• Background on campus FICA
  policy
• Reasons for changes
• Recent IRS CEP Audit

5
New Student FICA Tax Exemption PolicyOverview
of New Policy

• Introduction and Purpose
• Criteria for Student FICA Tax Exemption
• General Standards
• Enrollment Status
• Graduating Students

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New Student FICA Tax Exemption PolicyOverview
of New Policy(Continued)

• Special Enrollment Status
• Determinations
• Determination of Student Status
• Other Factors Irrelevant

7
New Student FICA Tax Exemption PolicyOverview
of New Policy(Continued)

• Payroll Periods
• School Breaks

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New Student FICA Tax Exemption PolicyOverview
of New Policy(Continued)

• Employees Ineligible for Student FICA Tax
  Exemption
• Career Employees
• Other Employee Groups
• Financial Impact

9

10
A student employee is

• Enrolled as half-time or greater student at
  UNC-CH
• Paid at least the Federal minimum wage can be
  paid more
• No FICA is withheld
• Student indicator on personnel action form is Y

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A student is hired as a Temporary Employee if

• Attending high school or
• Attending college other than UNC-CH
• Paid at least the Federal minimum wage can be
  paid more
• FICA tax is withheld
• Student indicator on personnel action form is 0

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Wage Rates for Student and Temporary Employees

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New Student FICA Tax Exemption PolicyNew
Payroll Process

• Testing Fall Semester
• Verification of enrollment
• Conversion timeline

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New Student FICA Tax Exemption PolicyWrapup and
Questions

• WWW Site for Policy http//www.ais.unc.edu/bfh
  ome/payroll/
• Review
• Questions for Panel

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New Student FICA Tax Exemption PolicyPanel

• Eddie Capel, Reemployed Retiree Extraordinaire
• Pat Crawford, Associate University Counsel
• Ken Litowsky, Director HR Policy Administration
• Kate McGaughey, Associate Provost for Finance
• Dennis Press, University Controller
• Betsi Snipes, Director of Payroll Services