All employees of the University of Nebraska are subject to social security tax withholding, based on the earnings levels and tax rates established by the IRS. Two categories of employees may be exempt from social security tax withholding, depending on the specific facts and circumstances relating to their employment as follows:
- Undergraduate and graduate students who meet the tests defined in IRS revenue procedure 98-16 and UNL Policy for being enrolled and regularly attending classes during the academic semester in which they are employed will be exempt from FICA withholding on University wages. The term “student” refers to undergraduate or graduate
- Nonresident aliens who hold F-1, J-1, M-1 or Q-1 visas and who are performing employment that is consistent with the provisions of their visa status; and do not meet the substantial presence test (SPT) which is 5 years for students and 2 years for teacher/researcher.