Supreme Court to rule on whether medical residents are students or employees

Wednesday, June 2, 2010; A05

The Supreme Court agreed Tuesday to decide whether medical residents are students or employees when it comes to collecting Social Security taxes.

Medical residents pay income taxes, but the Mayo Clinic of Rochester, Minn., and the University of Minnesota say residents fall under a Social Security tax exemption for student employees whose work is part of their education.

The Treasury Department changed its rules to take away the student exemption for medical students who work more than 40 hours a week. The Obama administration said that Social Security taxes for medical residents can total as much as $700 million a year.

The case is Mayo Foundation v. United States.

-- Associated Press

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