IRS Ruling

Fall
1999
Resolution Number: 
20.05
Assigned to : 
Category: 
Students
Status: 
Found Not Feasible

Whereas recent IRS policy discourages colleges from employing their own students and reduces the opportunity for students to gain the benefit of work experience, and

Whereas colleges are not required to pay social security taxes on student hourly wages, and these contributions are not withheld from student hourly checks, and

Whereas a recent IRS ruling has defined a student's status for the exemption to be a minimum of 12 units, and

Whereas it is difficult for many community college students to enroll in 12 units during regular semesters and it is impossible for them to enroll in 12 units in summer school,


Resolved that the Academic Senate reaffirm Resolution 20.02 S97 and urge the IRS to include the following students its regulations:
1. continuing education students; and
2. non-credit students with 10 verified hours per week for an 18-week semester, as defined by the college or district.

Recommendation: 
After then years, it does not look like this will happen. (mwl 2009)
Status Report: 

In spite of efforts to change IRS guidelines, both continuing education and non-credit students do not quality for social security withholding exemptions.