Benefits: FICA, Graduate Medical Education in the Medical School at the University of Minnesota

Under new IRS regulations that became effective April 1, 2005, the University is required to withhold FICA from your stipend (and to pay the employer portion of FICA with respect to the stipend).  The University intends to challenge the application of FICA to your stipends, because it believes that it is entitled to continue to rely on a previous court decision that the stipends of medical residents/fellows at the University are exempt from FICA.  While this challenge is underway, the University will reserve your rights to a refund of the FICA being withheld from your stipend in the event that the University prevails in its dispute with the IRS.  Your program will provide you with a FICA consent form at the end of each academic year.  The University of Minnesota asks you to consider signing the consent form in order that it might, if the situation allows, file for refunds of FICA taxes on your behalf.  The form includes instructions for completion.

Trainees that are funded by a National Research Services Award (NRSA) grant (9582, 9583, 9568 and 9569) are considered non-service fellows and therefore are not subject to FICA withholdings.

Please refer to the Documentation Retention Requirements for FICA Purposes policy in the General Policies and Procedures section of this manual.