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!
