Payroll taxes are assessed in identical circumstances for stipends provided to RAs, PAs, and TAs (i.e., income taxes are withheld, but FICA tax is not as long as the student is enrolled in at least a half time course of study). Trainee and fellow stipends are also taxable; however, tuition, fees, and books may be deducted before students calculate their tax liability. Find more information here.

Federal Insurance Contributions Act (FICA) tax: FICA tax funds social security and Medicare programs. To be eligible for FICA exemption, non-dissertator graduate students must be enrolled at UW–Madison at least half time (4 credits during the spring and fall semesters), or 3 credits for dissertators. Find more information here.

See Enrollment RequirementsFellowshipsProject or Program Assistant (PA)Research Assistant (RA)Teaching Assistant (TA)TraineeshipsAppendix 2 – Payroll Benefits