Time out.
20 hours per week. Period. School enforces FICA rule to keep students tax exempt.
John Krudy
Issue date: 9/18/08 Section: News
Students planning to rack up work hours this year might have to look elsewhere for tuition. The Hillsdale College controller has reminded departments that students can't work more than 20 hours in a week.
Hillsdale Controller Patrick Flannery notified department heads in an e-mail at the beginning of this semester that students working more than 20 hours each week violate their Federal Insurance Contribution Act exemption, which allows them to forgo social security and Medicare taxes - so long as they stay under the weekly limit.
"The requirement has been around since the work-study program was created, probably in the 1980s," Flannery said. "Students who carry a certain number of credit hours won't be taxed, and there are exceptions to the rule for Christmas or spring break. But there's always been this federal requirement for no more 20 hours worked."
FICA taxes amount to 7.6 percent of each check, which the employer (the college) must match. Flannery said if the government notices a violation, the college would be fined and the student would pay taxes and back taxes.
"It'll affect everybody," said Academic Service Specialist Kristina Waggener of Information Technology Services. She hires and schedules student technicians and computer lab assistants, and has cut the hours of two students who work in both capacities so they don't go over the limit.
"I have to get with Jim [Bowen, their other supervisor] and see how many they're working there," Waggener said. "I'm sure they'd like to work more than 20 hours."
Junior Mike Black, who worked three on-campus jobs last year, is now considering an off-campus job due to the 20-hour limit.
"It's affected me majorly," Black said. "I had to quit my job in financial records, and in the audiovisual department."
He's cutting his work time from 50 to 20 hours a week, and expects he'll have about $800 less income every month.
"I think it's a terrible idea," he said. "It's going to be big for audiovisual, because when Ted [Matko] gets a football game and a CCA in the same week, he won't have enough people to work it and stay under 20. He'll have to train more people, and it'll be more expensive."
Hillsdale Controller Patrick Flannery notified department heads in an e-mail at the beginning of this semester that students working more than 20 hours each week violate their Federal Insurance Contribution Act exemption, which allows them to forgo social security and Medicare taxes - so long as they stay under the weekly limit.
"The requirement has been around since the work-study program was created, probably in the 1980s," Flannery said. "Students who carry a certain number of credit hours won't be taxed, and there are exceptions to the rule for Christmas or spring break. But there's always been this federal requirement for no more 20 hours worked."
FICA taxes amount to 7.6 percent of each check, which the employer (the college) must match. Flannery said if the government notices a violation, the college would be fined and the student would pay taxes and back taxes.
"It'll affect everybody," said Academic Service Specialist Kristina Waggener of Information Technology Services. She hires and schedules student technicians and computer lab assistants, and has cut the hours of two students who work in both capacities so they don't go over the limit.
"I have to get with Jim [Bowen, their other supervisor] and see how many they're working there," Waggener said. "I'm sure they'd like to work more than 20 hours."
Junior Mike Black, who worked three on-campus jobs last year, is now considering an off-campus job due to the 20-hour limit.
"It's affected me majorly," Black said. "I had to quit my job in financial records, and in the audiovisual department."
He's cutting his work time from 50 to 20 hours a week, and expects he'll have about $800 less income every month.
"I think it's a terrible idea," he said. "It's going to be big for audiovisual, because when Ted [Matko] gets a football game and a CCA in the same week, he won't have enough people to work it and stay under 20. He'll have to train more people, and it'll be more expensive."
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