May 24, 2022

Volume XII, Number 144

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May 23, 2022

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Supreme Court Rules That Medical Residents Subject to FICA

On January 11, 2011 the United States Supreme Court handed down a decision subjecting wages earned by medical residents working 40+ hours a week to FICA taxes.  The Court decidedly applied Chevron’s two-part framework for evaluating the Treasury Department regulations and concluded that the full-time employee rule was not inconsistent with the student FICA exception, as provided under IRC § 3121.  Although the Internal Revenue Service conceded in March 2010 that wages earned by medical residents before the effective date of the full time employee rule are not subject to FICA taxes, this decision now subjects wages earned by medical residents since April 1, 2005 to FICA taxes.  Click here for the full-text opinion: http://www.supremecourt.gov/opinions/slipopinions.aspx?Term=10.

©2022 von Briesen & Roper, s.cNational Law Review, Volume I, Number 31
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About this Author

von Briesen & Roper’s Health Law Section provides comprehensive legal services to the health care industry nationwide as both general counsel and special project counsel. Our clients include integrated delivery systems, academic medical centers, community hospitals, Catholic-sponsored hospitals, rural and critical access hospitals, imaging centers, physicians and multi-specialty clinics, specialty hospitals, ancillary suppliers, home health agencies, nursing homes, hospices, assisted living facilities, mental health and AODA facilities, DME suppliers, laboratories,...

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