Since substitutes, temporary employees and part-time employees are not covered by TRS, the law requires that they participate in either FICA (Social Security Tax) or an alternative retirement plan set up under guidelines established by the Internal Revenue Service. A “FICA Alternative Plan” meets the requirements if at least 7.5% of the employee’s compensation is contributed to a defined contribution retirement plan.
The Region 10 FICA Alternative Plan is set up under Section 457(b) of the IRC. This Plan is a part of the Retirement Asset Management Services (RAMS) program. The deductions for the FICA Alternative Plan are taken out of your paycheck in lieu of deductions normally made to Social Security taxes. Since contributions are made to the FICA Alternative Plan on a pretax basis and Social Security taxes are after‑tax, the employee pays less income tax on the deductions for the FICA Alternative Plan. Deductions cannot be stopped/increased/decreased by Alief ISD and is requried for all substitutes, temporary and part-time employees.
For more information visit http://region10rams.org/plans/fica/ or
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