SECTION 6. SAFE HARBOR

NOT AVAILABLE FOR CERTAIN EMPLOYEES

.01 Services performed by an employee with the status of a “full-time employee” within the meaning of § 31.3121(b)(10)–2(d)(3)(iii) of the final regulations are not eligible for the student FICA exception because such services are not incident to and for the purpose of pursuing a course of study. Accordingly, the services of a full-time employee are not eligible for the safe harbor provided under section 7 of this revenue procedure.

.02 Services performed by a “professional employee” within the meaning of § 31.3121(b)(10)–2(d)(3)(v)(B)(1) of the final regulations are not eligible for the safe harbor provided under section 7 of this revenue procedure, because such services cannot generally be considered to be incident to and for the purpose of pursuing a course of study. However, the services of a professional employee may be eligible for the student FICA exception based on consideration of all the facts and circumstances.

.03 Services performed by an employee who receives or is eligible to receive employment benefits as described in this paragraph 6.03 (except as provided in paragraph 6.04 of this revenue procedure) are not eligible for the safe harbor provided under section 7 of this revenue procedure, because such services cannot generally be considered to be incident to and for the purpose of pursuing a course of study. However, the services of an employee who receives or is eligible for employment benefits as described in this paragraph 6.03 may be eligible for the student FICA exception based on consideration of all the facts and circumstances. For purposes of this revenue procedure, an employee’s services are not eligible for the safe harbor provided under section 7 of this revenue procedure if the individual —

(1) Is eligible for vacation, sick leave, or paid holiday benefits;

(2) Is eligible to participate in any retirement plan described in § 401(a) of the Code that is established or maintained by the institution, or would be eligible to par

January 10, 2005 309 2005–2 I.R.B.

.04 Half-time graduate or professional student. The term “half-time graduate or professional student” means an enrolled graduate or professional student, as defined in section 8.03 of this revenue procedure, who is carrying at least a halftime academic workload at an institution of higher education as determined by that institution under its standards and practices.