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FICA Talking Points
ACA Position
The American Camping Association supports a full
exemption from FICA taxation for full-time students
who are employed as counselors by seasonal camping
facilities for less than 13 weeks per year.
Background
Today, an estimated 1,600,000 full-time students
under the age of 23 are exempt from FICA tax withholding
already. Full-time students employed as seasonal
camp counselors, however, are apparently not exempt
and must pay FICA tax. Current Internal Revenue
Service regulations are confusing. Circular E
of the IRS' Employer's Tax Guide, may contain
a FICA exemption for camp counselors, however,
a definitive IRS opinion has not been provided.
Impact
A youth employment FICA exemption for seasonal
employment of student counselors will create payroll
flexibility and improve staff selections. The
exemption makes service in children's camps more
attractive to student workers. It therefore increases
the prospects for higher qualified counselors,
improves the quality of service being provided
to young children and it may increase employment
rates among youth. An exemption also improves
the economy of camp operations.
Current Status
- ACA chose not to pursue F.I.C.A. in the 106th
congress.
- We will seek cost study from Congressional
Budget Office to identify revenue loss.
- We will identify viability in the 107th congress.
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