News in brief: March 2011
The American Medical Student Association (AMSA) has welcomed the US Supreme Court’s decision that medical residents should continue paying social security taxes.
Teaching hospitals in the US, including the Mayo Clinic, had argued that medical residents should be classified as students as they are focused on learning, and should therefore be exempt from social security taxes. They challenged the Internal Revenue Service (IRS) ruling that a full time employee is one who works more than 40 hours a week, and that medical residents do not fall into the student category.
The tax is equal to 12.4% of wages, half of which is paid by the employer and half by the employee. The taxes on the roughly 100 000 medical residents in the US would bring in around $700m (£434m; €517m) annually, according to court papers.
But the high court found unanimously in favour of the IRS, with Chief Justice John Roberts