Exemption from Social security tax

Forum|Forum|3 years ago
March 15, 2023
2 replies
26 views

So apparently the "wages" of a college student, related to a "part time job" at their school of enrollment, is exempted from social security ( and Medicare I presume) withholding from those wages.

However, if the school happens to issue a 1099-MISC ( other income) as compensation to a student for a specific research assignment, do you think that would fall into the same exemption category and avoid the self-employment SS and medicare tax?

Appreciate any insights.

Thanks

jnd2546

ProSeries Professional

This topic has been closed for replies.

Best answer by Just-Lisa-Now-

1099MISC Other Income isnt subject to SS/Mdcr.

1099NEC for a self employed independent contractor would be.

qbteachmt

Level 15

Are you trying to describe "stipend" with all those quoted words?

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Just-Lisa-Now-

Answer

Intuit Community Champion

1099MISC Other Income isnt subject to SS/Mdcr.

1099NEC for a self employed independent contractor would be.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

J

jnd2546Author

Level 5

Clearly the answer I was hoping for, but I ask myself what's the difference whether they issue Misc or NEC? An advertised requirement that the student applies for and gets the job to deliver a product. Sounds like NEC independent contractor; on the other hand if "W-2 wages" are exempted I guess that would be my answer to IRS on challenge and blame the school for not reporting on W-2.

Will go with your answer and not calculate SS/Medicare.

TY!

qbteachmt

Level 15

"but I ask myself what's the difference whether they issue Misc or NEC?" That and W2, all have differences.

Without knowing what is "deliver a product" or which type of course or degree is involved (graduate studies? field placement?), one thing that makes the difference is when the person is under a departmental program vs hired by the institution directly. For instance, a Physical Sciences department will have a budget in the chemistry department for a lab assistant. That might be for teaching assistant, providing services, a specific program of study (such as a sponsored testing study) or it can be part of a work-study program. There are stipends, grants and fellowships.

Or, the person issuing the 1099-Misc doesn't know it changed from that form box 7 to a 1099-NEC, years ago.

Not enough information to really explain it more than this. The issuer can be contacted, you know.

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