Who Is Exempt From Social Security Tax?

Social Security is a social insurance program designed to pay benefits to the elderly and disabled. The taxes are collected via payroll deduction in compliance with the Federal Insurance Contributions Act (FICA). Self-employed individuals are required to contribute as both an employer and employee. In certain situations, you can be exempt from paying the tax.

Students

Certain categories of students are exempt from paying Social Security tax. Graduate students working on a dissertation are exempt from FICA withholding. Students who work for an educational institution are exempt if their primary relationship with the institution is that of a student.

Nonresident Aliens

If you are considered a nonresident alien in the United States, you're not required to pay FICA taxes if you are present in the country to attend college or are an employee of a foreign government. You could also be exempt if you're employed as a professor, teacher, physician, au pair or summer-camp worker.

Medical Residency

Medical students are exempt from FICA withholding while they complete their residency program.

The Amish

Members of the Amish religious order are exempt from paying FICA taxes. This is a result of court battles between the Amish and the IRS in which the Amish claimed that Social Security taxes were insurance premiums, which go against the Amish belief that families should take care of their own, including the elderly and disabled.

State Differences

Some states apply slight variations to the exemption qualifications. For example, in California, college students who take at least a half-time course load are exempt from FICA tax, but only for wages earned during the fall and spring semesters. In Connecticut, state and local government retirees are exempt.

References

• FineWeb.com
• AmishNews.com
• IRS.gov

Resources

• State FICA Information