Resident and Fellow Section

Residents are Exempt from FICA Tax on Stipends

A recent decision from the United States District Court in Minnesota on August 4, 2003, ruled that the student exception to FICA tax on wages does apply to stipends paid to residents participating in the Mayo Foundation medical resident program.

The United States v. Mayo Foundation case reaffirms the essential holding of the Minnesota v. Apfel case from 1998 wherein the 8th Circuit U.S. Court of Appeals ruled that the University of Minnesota did not have to pay FICA (Federal Insurance Contribution Act) taxes for their residents because they were considered students rather than employees. In response to this court ruling, the Internal Revenue Service issued a memo in 2000 establishing rules by which institutions may file a claim to recoup FICA taxes on behalf of their residents. To read the entire case opinion, visit the Cornell University Law School Web site.

New NIH Loan Repayment Programs Repay Student Loans for Health Researchers

The National Institutes of Health (NIH) Loan Repayment program offers up to $35,000 per year to repay student loans of scientists, physicians, dentists, and other health professionals willing to commit to a career in clinical, pediatric, health disparities, or contraception and infertility research. Applicants must have doctoral-level degrees and commit to spend at least 50% of their time for two years conducting qualified research. The online application opens September 1 and closes December 31, 2003. Visit the National Institute of Health Web site for more information.

Resident Survival Tips Available

AMA members share their "Resident Survival Tips" in a free 8-1/2x11 flyer from the AMA. Post this flyer on your bulletin boards or place in resident mailboxes. To receive the flyer, send an email with the word "tips" in the subject line of your email. You will receive an auto-reply email with the flyer attached in Adobe Acrobat format.