Student Retirement Withholding
The Internal Revenue Service (IRS) excludes from Social Security and Medicare coverage services performed by students employed by a college or university provided the student is enrolled at least half-time and regularly attending classes. To be excluded from Social Security and Medicare taxes a Student Employee must be an undergraduate student enrolled in 6 units per term OR a graduate Student Enrolled in 4 units per term.
Student Employees not meeting the enrollment requirement of 6 units (4 units for graduate students) are required to pay 7.5% of all earnings into a State-sponsored retirement plan (PST) in lieu of Social Security coverage. Student Employees are also subject to Medicare taxation, currently 1.45%, which is paid by both the student and the employing department. Please contact Payroll Services if you have additional questions.
Non-excluded Student Employees (see page 3) who are required to contribute to the State-sponsored PST retirement plan may request a refund of retirement contributions. In addition, retirement contributions are subject to Federal and State taxation at the time of withdrawal. Forms for requesting retirement refunds may be obtained from Payroll Services (Administration Bldg., Room 107) or downloaded here.
Further questions regarding the PST Retirement Plan may be directed to the address below:
Savings Plus Program
PST Retirement Plan
1800 15th Street
Sacramento, CA 95814-6614