FICA Tax Refund

FICA Tax Refund

UPDATE- February 21, 2013

ATTENTION: The FICA reimbursement checks (including interest) have been mailed out to all eligible former trainees who have CONSENTED. They have been sent to your residence through UPS. Please be on the lookout for these packages as they have been sent on a Two-Day Delivery. If you have not received the check by the end of next week (3/1/2013), please email rlc9v@virginia.edu with the subject line "Missing FICA Check". 

Your W-2c form outlining the reimbursement will be sent by KPMG shortly; we still expect this to be sent by the first quarter of this year. If you have any additional questions, please send an email to rlc9v@virginia.edu. 

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THIS INFORMATION RELATED TO THE REFUNDS WAS PREVIOUSLY POSTED.

The refund is the partial resolution of a dispute between teaching hospitals and the IRS as to whether wages earned by medical residents should be subject to FICA taxes. The University of Virginia, along with other teaching hospitals throughout the US, has filed claims with the IRS, claiming that housestaff interns/residents should be considered students, and, therefore, be exempt from social security and Medicare tax (FICA). In March, 2010, the IRS announced that it has now made an administrative determination to accept the position that medical residents are exempt from FICA taxes based on the student exception, for tax periods ending before April 1, 2005, when new IRS regulations went into effect.

UVA, working with tax consultants KPMG, contacted prior housestaff members to inform them of the process to consent to receive a refund of FICA taxes. The deadline for KPMG to receive consent forms was early May 2012.

Any refund and interest money received for the residents from the IRS will be passed through to the residents. Neither the School nor the Medical Center will retain any money intended for residents. There are no service or convenience charges reducing the amounts that may be refunded. The School and Medical Center are bearing the cost of applying for and processing refunds.

FAQs:

What will be the timing of the refund?

See the above announcement.

What if I performed a residency at another hospital (outside of UVA)?

Please contact the other hospital for information regarding the FICA refund for wages you received from them.