washingtonpost.com
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

Post a Comment


Comments that include profanity or personal attacks or other inappropriate comments or material will be removed from the site. Additionally, entries that are unsigned or contain "signatures" by someone other than the actual author will be removed. Finally, we will take steps to block users who violate any of our posting standards, terms of use or privacy policies or any other policies governing this site. Please review the full rules governing commentaries and discussions. You are fully responsible for the content that you post.

© 2010 The Washington Post Company