The Supreme Court ruled unanimously this morning that medical students training to be residents are employees, and not students, and therefore are subject to Federal Insurance Contributions Act taxes (Mayo Foundation for Medical Education and Research v. United States, U.S., No. 09-837, 1/11/11). Local medical schools and hospitals should take notice and consider whether amended payroll tax returns are required and what effect this decision will have on their resident programs.
Click here (and then click on Mayo) to read a full copy of the opinion.
