2002 EO CPE Text
Exhibit 1
Exhibits to Topic A
Who is the
Common Law
Employer? Student FICA Exception Analysis
Is the Common Is the Common
Law Employer a No Law Employer a Yes Is the Resident a Yes Student FICA Exception
State or Local S/C/U or a related Student?
§509(a)(3) Applies
Government?
organization?
Yes
No
No No
Are Student
Services Covered
Under a Section
218 Agreement?
Yes Student FICA Exception
Does Not Apply
Exhibit 2 (1 of 4)
Model A
(Participating Institutions)
State University County Hospital
Family
Practice
Plan
Medical
School
V.A. Hospital
State
University
Hospital
Private, Not for
Profit Hospital
General Characteristics of Model:
• State University Medical School is Sponsoring Institution.
• State University employees are covered under the State’s section 218 agreement, but the State has chosen to
exclude student services.
• Residents perform rotations at State University Hospital and Participating Teaching Hospitals.
• State University Hospital is part of the same legal entity as the University or the University Medical School.
• Residents are supervised by attending physicians who are “faculty” members of State University Medical School.
• State University has been paying the residents and treating them as employees for employment tax purposes.
Exhibit 2 (2 of 4)
Model B
(Participating Institutions)
County Hospital
Private University
Medical School
Family V.A. Hospital
Practice
Plan
Private, Not for
Profit Hospital
University
Hospital
General Characteristics of Model:
• Private University Medical School is Sponsoring Institution.
• Residents perform rotations at University Hospital and Participating Teaching Hospitals.
• University Hospital is a separate legal entity which may be owned or controlled by the Private University.
• Participating Teaching Hospitals have entered into “affiliation agreements” with the University Medical School.
• Residents are supervised by attending physicians who are “faculty” members of University Medical School.
• University has been paying the residents and treating them as employees for employment tax purposes.
Exhibit 2 (3 of 4)
Model C
(Teaching Hospitals, one of which
may be the sponsoring institution)
County Hospital
Faculty
Practice
Plan
University V.A. Hospital
Medical School
Private, Not for
Profit Hospital
General Characteristics of Model:
• Either a Teaching Hospital or the University Medical School is the sponsoring institution.
• The teaching hospitals are independent of the University Medical School except for an “affiliation agreement” with
respect to the GME program.
• A University Hospital may or may not be part of the overall structure.
• Residents perform rotations at Teaching Hospitals.
• Residents are supervised by attending physicians who are “faculty” members of University Medical School.
• Affiliated Teaching Hospitals pay the residents and treat them as employees for employment tax purposes.
Exhibit 2 (4 of 4)
Model D
Teaching Hospital
General Characteristics of Model:
• Teaching Hospital has no affiliation with a medical school.
• Residents perform services at Teaching Hospitals.
• Residents are supervised by attending physicians who are on the staff of Teaching Hospital.
• Teaching Hospitals pays the residents and treats them as employees for employment tax purposes