Division of Human 

Human Resources Electronic Newsletter
March 30, 2001

Included in this issue:
*Voluntary Tax Sheltered Annuity Program
*Classification Updates
*Group Health Insurance Update
*Clarification of FICA Tax Exemption for Students

Voluntary Tax Sheltered Annuity Program
The Kansas Board of Regents currently has 56 approved companies authorized to provide voluntary tax sheltered annuities, IRC 403(b), for KSU employees. A listing of these companies is on the Benefits Administration page located at:

Most of these companies have their own web site and their links are included.

Please share this information with employees in your department.

Classification Updates
Effective 3/18/01, the classification titles Laborer, 3260M1, salary grade 7 and Bookkeeper, 1525K2, salary grade 15 have been abolished statewide. These classifications had been utilized for Classified Temporary positions at K-State and those departments affected have been contacted.

Group Health Insurance Update
The State of Kansas Health Care Commission has made some revisions to the administration of the state’s health care program. These are:

    1. employee’s desiring to enroll a family member must provide supporting documents establishing the relationship, e.g. marriage certificate, birth certificate.
    2. any family member over 60 days of age is required to have a Social Security Number (SSN).
    3. the 31-day time limit for selecting or declining enrollment in the State of
    4. Kansas health insurance program begins from the effective date of employment indicated on the Employee Data Sheet (EDS) regardless of when the employee actually beings work or when a contract is executed.

Questions should be addressed to Ms. R. J. Steelsmith at (785) 532-6277.

Clarification of FICA Tax Exemption for Students
There seems to be confusion regarding students who are exempt from FICA versus students who do not have enough gross earnings to withhold federal income taxes. Full-time students are exempt from FICA (otherwise known as Social Security Taxes) when enrolled in enough hours and regularly attending classes at that school and the work performed is incident to and for the purpose of pursuing a course of study at the school. Students are not exempt from Federal Income Tax Withholding unless qualified based on the instructions in filling out a W-4 form and subsequent completion and submission to the Division of Human Resources. Often a student employee does not earn enough wages on a single paycheck for any Federal Income Tax to be deducted from that paycheck. That is not the same as being exempt from Federal Income Tax Withholding. The W-2 issued in January will reflect in Box 1 the Gross Wages for the year. The Social Security Wages reflected in Box 3 and Medicare Wages reflected in Box 5 exclude the wages paid to a student who is FICA tax exempt. Questions may be directed to your payroll liaison in the Division of Human Resources at (785) 532-6277.

"People take different roads seeking fulfillment and happiness. Just because they're not on your road doesn't mean they've gotten lost." - H. Jackson Brown, Jr.

Division of Human Resources   103 Edwards Hall  Manhattan, KS 66506-4801  (785) 532-6277
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Kansas State University
December 18, 2001