The University of Texas at Arlington

All United States citizens, legal residents, and nonresident aliens classified as residents for tax purposes are required to participate in the FICA system.

Nonresident aliens may be exempt from FICA participation. (Refer to Payments to Nonresident Aliens, Procedure 1-20.)

Students who are enrolled at least one-half time and are employed in non-retirement benefit eligible positions may be exempt from FICA participation.

FICA is comprised of two parts: Social Security (also known as OASI - Old Age, Survivors Insurance) and Medicare. The rate and maximum subject salary base are subject to change each calendar year. Please contact Payroll Services for the current rate and base.

To calculate the subject salary base:

Benefit Replacement Pay (BRP)

Prior to January 1, 1996, the State paid 5.8% of the social security tax on the first $16,500 of the State employee's earnings. This payment was treated as taxable income to the employee. The remaining FICA tax was paid by the employee.

1. The 74th Legislature passed Senate Bill 102, eliminating the provision for the State of Texas to pay the 5.8% portion of the FICA tax. The legislation provided that state employees on the payroll as of August 31, 1995, would continue to receive the state-paid FICA benefit on wages paid through December 31, 1995. Beginning with wages paid January 1, 1996, state-paid social security ceased and Benefit Replacement Pay was paid to eligible employees to offset the loss of state-paid social security. The Benefit Replacement Pay calculation is based on the employee's compensation as of October 31, 1995.

2. As of September 1, 1997, the Benefit Replacement Pay was added to the gross pay of eligible employees. It is no longer reported as a separate item.

3. Employees hired on September 1, 1995, or later are not eligible for Benefit Replacement Pay. An eligible state employee who leaves state employment after August 31, 1995 for at least 12 consecutive months is ineligible to receive Benefit Replacement Pay upon returning to state employment.