Every employer is responsible for taking federal payroll taxes out of employee’s compensation for Social Security and Medicare. DCP is a qualified retirement plan and is the university equivalent to FICA (Federal Insurance Contributions Act). Students can be exempt from these taxes if they are registered for at least half-time (6 units at UCSD) AND working less than 80% (less than 64 hours over a two week pay period).

If you are not registered for more than 6 units AND/OR are working more than 64 hours over a two week pay period, your will no longer be exempt and DCP will be deducted from your check. If you lose exemption status you will have 7.5% of gross wages for DCP and 1.45% for Medicare deducted from your paycheck. In your pay check there will be an explanation under “Deduction” that an amount has been withheld for “DCPSAFEHRB” or “MEDICARE”. All international students (F-1 and J-1 visas) who are nonresident aliens (for U.S. tax purposes only) are exempt from DCP. For more information, check the FAQs on our website!

This article originally appeared in the June 2017 issue of The Triton Worker.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s