Medical Residents Ruled Employees

Inside Higher Ed
January 12, 2011

Medical residents are considered employees for payroll tax purposes, and therefore do not qualify for a student exemption, the U.S. Supreme Court ruled Tuesday.
The case, Mayo Foundation v. United States (09-837), pitted the Mayo Foundation and the University of Minnesota against the U.S. Treasury Department, which issued regulations in 2004 that declared residents to be employees rather than students during their training. The department’s rules concluded that residents, who spend between 50 and 80 hours a week caring for patients, are appropriately classified as employees. Consequently, they are subject to taxes for Social Security and Medicare, which both residents and teaching hospitals must pay.

Full Story: http://www.insidehighered.com/news/2011/01/12/supreme_court_says_medical_residents_not_students_for_tax_purposes