Supreme Court to hear Mayo Clinic case today
Remember that Mayo Clinic vs IRS case going to the U.S. Supreme Court?
I wrote an item on it at the start of October. Well, the latest stage of this case kicks off today.
The P-B's health reporter, Jeff Hansel, wrote this piece today as a reminder.
The U.S. Supreme Court will hear oral arguments today in the case Mayo Foundation v. United States, which will decide whether medical residents are students or employees.
Mayo, joined by the University of Minnesota, wants the court to declare that medical residents should be considered students so the institutions won't have to pay Social Security taxes.
The IRS instituted a rule change to require the clinic, the university and other institutions to pay the taxes. The clinic and the university sued.
The Supreme Court is reviewing a decision by the 8th Circuit Court of Appeals, which ruled against Mayo in 2009.
Justice Elena Kagan has recused herself from the case because she submitted a brief supporting the government's view before she was named to the court.
According to Post-Bulletin archives, "the Social Security tax represents 12.4 percent of wages. Half of the tax is paid by the employer and half by the employee.
For a medical resident earning a $50,000 stipend, that represents $3,100 paid by the resident and $3,100 paid by the hospital."