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.