Summary: Medical Resident FICA Refund Claim Information
The Internal Revenue Service (IRS) recently announced that it will refund the employer
and employee portion of FICA taxes paid for medical residents prior to April 1, 2005, so
long as the employer previously filed a timely refund claim with the IRS. The University
of California Office of the President (UCOP) has already made the requisite filing on
behalf of all of our medical schools and medical centers for tax periods dating back to
January 1, 1995.
FICA is a two-part tax consisting of Social Security (6.2%) and Medicare (1.45%).
Please note that the University of California medical residents and other non-career
employees pay only the 1.45% Medicare portion of the tax and do not pay the 6.2%
Social Security portion of the tax. Consequently, any refunds received by the University
and its medical residents will be limited to the 1.45% Medicare portion of the tax prior to
April 1, 2005.
We expect that, as part of this process, each resident eligible for a Medicare tax refund
will have to sign a written statement that will be developed. Once UCOP receives
definitive instructions from the IRS, residents from time period January 1, 1995 April 1,
2005 will be contacted to obtain these signed statements. Individual refunds to the
medical residents will be processed shortly after the University receives the Medicare
tax refunds from the IRS. The IRS has not yet provided a timetable as to when medical
schools, medical centers, hospitals and universities will begin receiving refunds.