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OASDI (Social Security & Medicare)

OASDI (Social Security and Medicare) are mandatory federal payroll taxes. Federal Insurance Contributions Act (FICA) is the combined employee and employer portions of mandatory OASDI (Social Security and Medicare) taxes.

Social Security is withheld on taxable gross income up to an annual wage limit each year.

Medicare is withheld on taxable gross income. The rate is increased when the minimum subject gross threshold is crossed.

Exceptions to OASDI (Social Security and Medicare) taxation include:

  • IRS Student FICA exemption
    • You must be:
      • a) In a student job class, and
      • b) attending school full time, and
      • c)  working for an educational institution.

Information on the Student FICA exemption

  • Scholarship and Fellowship Stipends
    • Scholarship and fellowship earnings are not subject to OASDI (Social Security and Medicare) taxation.

Information on the Scholarship and Fellowship Stipends exemption

  • Foreign National employees may be exempt under certain circumstances.

Information on Foreign Nationals exemptions