January 13, 2011

Supreme Court Decision on Medical Residents Upholds Status Quo

As reported by Inside Higher Ed and many others, the Supreme Court decided this week that medical residents do not qualify for student payroll tax exemptions and must pay into social security and medicare as other employees do.

This ruling upholds U.S. Department of Treasury regulations issued in 2004, which the UW has been in compliance with since. Had the ruling gone the other way, medical residents across the country would have been reimbursed for taxes collected since 2005, and their institutions would have been able to cease collection in the future.