If there is a payroll period ending prior to the 12th class day, which follows a break of five weeks or more, the payroll system will not know if the student qualifies for the exemption until the 12th class day. To qualify for the exemption, the student must be: The determination of the student's enrollment status is determined as of Census Day each semester. "@type" : "ContactPoint", The Federal Insurance Contributions Act (FICA) has two components: FICA is the social security and medicare taxes that are withheld from an employee's wages/earnings. Tax Office University of Houston tax@uh.edu. "name": "TaxAct Online Tax Filing", FICA (Federal Insurance Contributions Act) refers to taxes for Social Security and Medicare. Be a non-career employee (not eligible for retirement benefits), Work less than 20 hours per week or not more than 4 1/2 months per year (except 50 percent time graduate student titles). Therefore, these employees arenot eligible for the student FICA exemption. "contactPoint" :{ The federal government then deposits the funds into the Social Security trust fund. The FICA exemption also applies to students enrolled on less than a half-time basisifthe student requires less than the above standards to complete the degree program. Summer employment will not be exempt from FICA taxes unlessyou areenrolled/attending class in accordance with the half-time standards for the summer session. FICA and OBRA Exemption FICA and OBRA Exemption. height: 100px; The Internal Revenue Procedure 2005-11 sets forth the standards that are used to determine whether student-employees are eligible for the student FICA exemption. Student Exemption for Social Security and Medicare Taxes (FICA) The Federal Insurance Contributions Act (FICA) tax is a tax imposed by the federal government to fund Social Security and Medicare - federal programs that provide benefits for retirees, the disabled, and children of deceased workers. Students that work more than 32 hours per week will be considered career employees for the student FICA exemption and will be subject to FICA taxes. After this period of time has passed, international students are classified as Resident Aliens for Tax Purposes and are subject to FICA tax withholding. This chapter covers issues specific to operating a Federal Work-Study (FWS) program, including Community Service, Job Location and Development (JLD), and the Work-Colleges program. . Confirm that you do not want your personal data sold in the future. Please email the Payroll Office at Payroll_Office@baylor.edu to complete the form. Each semester, all facts and circumstances may be reevaluated to determine the proper FICA tax withholding or exemption. You can report your income this way. Form 8843 is not an income tax return. Students who meetoneof the following criteria will receive a FICA rebate depending on the criteria and the time by which it was met, a student can receive their rebate in late June or in October. Budget and Financial Planning This form is required to be completed by all Student & Graduate Assistant employees for each job. 4.City. General Explanation --- Condensed version of the rules for the Student Social Security Tax Withholding Exemption. 2.Employee Name 3.Address. To be a premier public research university, providing access to educational excellence and preparing citizen leaders for the global environment. Student FICA Exception | Internal Revenue Service - IRS tax forms Mobile Phone. Student FICA Exemption What is FICA? Ispredominantly intellectual and varied incharacter. During any semester or summerwhena student worker has multiple appointmentsatleast oneof which confersprofessional, career, or full-time employeestatusorprovides certainemployee benefitsFICA taxes will be withheld from all earnings, and no exemption will be allowed. Census Day is usually at least 12 class days into an academic term. However, the tax withheld will be refunded on the next pay day. Student wages are not considered wages on which one can collect unemployment, pursuant to section 6 K of the Massachusetts General Laws 151. SeeSPG 201.24for university policy regarding theFICAexemption for students. The Federal Work-Study Program | 2022-2023 Federal Student Aid Handbook If information is incomplete, the records will not match up and FICA tax will be withheld. If information is incomplete, the records will not match up and FICA tax will be withheld. General Explanation--- Condensed version of the . Have a question? "https://www.youtube.com/taxact", :)?#-;6. Student FICA Exception Services in the employ of certain public or private nonprofit schools, colleges, or universities, or affiliated organizations described in Section 509 (a) (3) of the Code performed by a student qualify for the exception from FICA tax provided under IRC Section 3121 (b) (10) (Student FICA exception). "areaServed" : "US" !oP Solved: Student Exception to FICA Tax - Intuit Determine your eligible exemptions carefully, paying particular attention to the instructions under Exemption from Withholding at the top of the form. When a student's enrollment hours change during a term, retroactiveFICAtax charges or refunds willnotbe processed. Necessitatesthe consistent exercise of discretion and judgment. If a students enrolled credit hours change after the add/drop period in a given term, retroactive FICA tax charges or refunds will, Budget Development for FY23 Calendar (PDF), Budget Development for State Budget FY23 Calendar (PDF), Salary and Wage Redistribution and Justification (SWRJ) Application, Request to Change Department Default Chart String Form (PDF), Taxable Moving Expense Reimbursement (PDF), Bank Account Management and Fund Transfers, Reporting Loss of/Damage to University Property, Rutgers Biomedical and Health Sciences (RBHS), Student Experience Improvement Initiative, Student ABC | Rutgers University Finance and Administration, http://www.irs.gov/irb/2005-02_IRB/ar16.html, http://www.irs.gov/pub/irs-drop/rp-05-11.pdf, http://www.irs.gov/pub/irs-regs/td_9167.pdf, Report Accessibility Barrier / Provide Feedback, Rutgers, The State University of New Jersey. "contactType" : "customer service", }, FICA (Social Security and Medicare) taxes do not apply to service performed by students employed by a school, college or university where the student is pursuing a course of study. 6. PDF FICA (SOCIAL SECURITY MEDICARE EXEMPTION FORM - Liberty University Census Day is usually at least twelve class days into an academic term. International students in F-1 and J-1 nonimmigrant status are entitled to the FICA exemption for the first 5 calendar years of physical presence in the United States. Ithaca, NY 14850, Executive MBA Program Tuition Waiver Taxation, Honoraria/Expense Reimbursement Attestation Form, IRS Alien Liability for Social Security and Medicare Taxes, Old-Age, Survivors, and Disability Insurance (OASDI). Tax Exemption | Student Employment Office - Boston University The University follows IRS rules in determining a student's exemption from FICA withholding. The student must notify Payroll Management Services for the exemption if student is qualified and exemption is not in their paycheck. Any students who are FICA exempt but did not become exempt before mid-June will receive their rebate in October. "contactType" : "customer service", "https://www.youtube.com/taxact", Domestic students may update their W-4 tax status at any time via the Update Tax Information option on the Work Tab of the StudentLink. The student must notify Payroll Management Services for the exemption if student is qualified and exemption is not in their paycheck. { If you are an International student in F-1 or J-1 visa status and had no income, you must file Form 8843 (PDF) "Statement for Exempt Individuals and Individuals with a Medical Condition." Social Security Numbers are not required to file Form 8843. During the academic year, students who are enrolled for six or . "telephone" : "+1-319-373-3600", Being a student does not automatically exempt you from having to pay taxes. Summer 2022:FICA rebates were issued Friday June 24th to the students who meet one of the criteria below. International students are subject to both federal and state income taxes. You also have the option of selecting "FICA View Only." . CqK{cClJfXd8d/t0 }i'7'8-B'uyv2QiuN84UE{r!{ayqBJPx5.us|068FTu%@*($O~_xX{,yJCT>? To qualify for the exemption, the student . "logo": "https://www.taxact.com/images/schema-logo.jpg", When eligible, OASDI is withheld at 6.2% and Medicare at 1.45%, for a total tax of 7.65%. }, Individuals with disabilities are encouraged to direct suggestions, comments, or complaints concerning any accessibility issues with Rutgers websites to accessibility@rutgers.edu or complete the Report Accessibility Barrier / Provide Feedback form. The above criteria will be used and no exceptions will be made for individual students. If this form is not submitted with the payroll packet, the FICA status will be set as eligible until a form is received by payroll or . If there is a payroll period ending prior to the 12th class day, which follows a break of five weeks or more, the payroll system will not know if the student qualifies for the exemption until the 12th class day. You need to complete a new W-4 every year only if you have claimed exempt. Form 8233 | Payroll Office | Baylor University As a result, there may be pay periods prior to the student exemption determination in which a student may be paid and taxed. All rights reserved. "@type": "Organization", Those modifications now allow Texas to exempt qualified student employees at public universities from FICA taxation for social security coverage. , UTSA will be a great public research university, UTSA will be an exemplar for strategic growth & innovative excellence, as designated by the U.S. Department of Education, Sexual Harassment and Sexual Misconduct Policy. Student wages are not considered wages on which one can collect unemployment, pursuant to section 6 K of the Massachusetts General Laws 151. 2022 University of Houston. United States citizens and permanent residents who qualify may claim exemption from Federal income tax withholding by completing Form W-4. 175 0 obj <> endobj 242 0 obj <>/Filter/FlateDecode/ID[(\300E\241\022\310\301\363D\245\t\200J\235\342!\337) (\300\317\254\265\253?\236C\213\320rdX\205\)f)]/Index[175 68]/Info 171 0 R/Length 114/Prev 708764/Root 176 0 R/Size 243/Type/XRef/W[1 3 1]>> stream Student FICA exemption status is set after Census Day for each academic period. Phone: 617-353-3594 The trust fund monies are used to provide retirement income, disability insurance, Medicare and survivor benefits. ] "https://twitter.com/taxact", Employers match the amount withheld and submit the money, of which there is an employee and an employers share, to the federal government. Student FICA Exemption - Business Affairs and Controller - UT Arlington An automatic exemption from FICA is applied to all eligible full and part-time students who are also employees of Cornell. If there is a payroll period ending prior to the 12th class day, which follows a break of five weeks or more, the payroll system will not know if the student qualifies for the exemption until the . It is important for student workers to know that they are not automatically exempt from paying taxes, as their earnings remain subject to federal and state income taxes. FICA Exemption Criteria for Student Employees The law specifically disqualifies postdoctoral students, postdoctoral fellows, medical residents, and medical intern positionsfromstudent FICA exemptioneligibilitybecause the services performed are not incident to or for the purpose of pursuing a course of study. } Form W-2 - Student FICA Exemption - TaxAct Ask, or enter a search term below. The payroll system will review the students enrollment continually throughout the year to determine student status. #navigation-offset, .taxes-bar + nav.signed-in ~ #navigation-offset { After Census Day, the Student FICA Refund Process is run to cross-reference employee records with student records. NON-EXEMPT from FICA taxes (Withhold from paycheck) You do not qualify to claim exempt or want FICA taxes to be . Half-time undergraduate or graduate students not considered a professional, career, or full-time employee,qualify for the student FICA exemption. We encourage an environment of dialogue and discovery, where integrity, excellence, inclusiveness, respect, collaboration and innovation are fostered. Contact: Payroll Services. Every semester, refunds will process through the payroll system and, in most cases, refunds will be processed on the next available pay day following Census Day and every payroll afterward. "https://www.instagram.com/taxact", The IRS interpretation as set forth in Revenue Procedure 2005-11 provides that a student employee will be exempt from FICA taxes if the student is enrolled at least half-time in accordance with the regulations issued by the Department of Education. xcbd```b``e`T6 R d VH RA DImA+@ADDxA]R ZKAy&o`GI,W$, C Domestic students may update their M-4 tax status at any time via the Update Tax Information option on the Work Tab of the StudentLink. The IRS interpretation of this section, as set forth in Rev. Please try again later, Social Security Tax / Medicare Tax and Self-Employment. UTSA students who work on campus may be eligible for an exemption from Federal Insurance Contribution Act (FICA) taxes on wages earned after June 30, 2000. STUDENT FICA EXEMPTION FORM. ; All other undergraduate students will be exempt during the Fall and Winter terms in which they are enrolled for 6 or more credit hours (considered to be a half-time or greater enrollment). We encourage an environment of dialogue and discovery, where integrity, excellence, inclusiveness, respect, collaboration and innovation are fostered. Some foreign nationals who are considered nonresident aliens for tax purposes (based on the "Substantial Presence Test" - see IRS Publication 519) are also exempt from FICA taxes (see IRS Alien Liability for Social Security and Medicare Taxes). ThestudentFICA tax exemption appliesonlyto employment during school breaks offiveweeks or less. * Individuals in this category must submit theFICA ExemptionRequest Form,signed by the department and student. The countries listed below DO NOT have a tax treaty with the U.S. government exempting compensation paid to students. The five-year exemption permitted to F-1, J-1, M-1 full-time students also applies to any period in which the international student is in 'practical training' allowed by the United States Citizenship and Immigration Services USCIS, as long as the foreign student is still classified as a nonresident alien for tax purposes. Student - FICA Exemption Students generally do not have to pay FICA taxes. It is also known as Old Age Survivor Insurance (OASI). You have been successfully added to the TaxAct Do Not Sell list. FICA Exemption Criteria for Student Employees nonresident alien international student you can be exempt from FICA taxes all year. The above criteria will be used and no exceptions will be made for individual students. Have a question? Student Employment staff may not give advice on completing Form W-4. Detail of General Rules --- A detailed description of the one page explanation. The University of Texas at San Antonio is dedicated to the advancement of knowledge through research and discovery, teaching and learning, community engagement and public service. FICA IRS Student Guidelines and Rules | Payroll Office | Baylor University Student FICA Exemption Memo to Administrators --- General guidelines to consider at the beginning of each semester. FICA Schedule --- Student FICA calendar listing the pay period deadlines to submit ePAR, to prevent FICA withholding on student employees' payroll. x]j0~ To be exempted, youmust beeligible for exemption on the last day of classes in the academic period preceding the break. The university follows IRS rules in determining a student's exemption from FICA withholding. Student FICA exemption status is set after Census Day for each academic period. If there is a payroll period ending prior to the 12th class day, which follows a break of five weeks or more, the payroll system will not know if the student qualifies for the exemption until . The University will treat the following two categories of employees as eligible for the student FICA exemption despite receipt of employee benefits: 1) full time students whose normal work . "areaServed" : "US" Tax Information for International Students provides details about tax treaties as well as general tax information. As an institution of access and excellence, UTSA embraces multicultural traditions and serves as a center for intellectual and creative resources as well as a catalyst for socioeconomic development - for Texas, the nation and the world. The employer does not withhold FICA taxes from your wages and is not required to pay the employer's portion of FICA tax. Rules for Student Social Security Tax Withholding Exemption. A graduate student certified full or part-time, A graduate or undergraduate student who was enrolled for a minimum of 6 credit hours. Those modifications now allow Texas to exempt qualified student employees at public universities from FICA taxation for social security coverage. Effort Certification Process Streamlined for Terminating Employees, Payroll Department Is Closed to the Public Until Further Notice (posted 4/13/20), New COVID Program Code Added to M-Pathways, Payroll Cutoffs/Deadlines/Paydate Calendar, FICA Exemption Criteria for Student Employees. Census Day is usually at least 12 class days into an academic term. Additionally, graduate students who are enrolled in an academic semester with a full-time certification and who are working on campus are exempt from FICA deductions. The Form 8233 DOES NOT need to be completed. The Internal Revenue Service Revenue Procedure 2005-11 sets forth the standards that are used to determine whether student-employees are eligible for the student FICA exemption. For student eligibility criteria relating to Campus-Based Programs, including FWS, refer to Volume 1. Wages paid for services performed by a student employee are eligible for the FICA exemption for all payroll periods that fall fully or partially within the academic term. Student FICA Exemption - University of Houston Internal Revenue Service Notice:http://www.irs.gov/irb/2005-02_IRB/ar16.html, IRS Revenue Procedure:2005-11,http://www.irs.gov/pub/irs-drop/rp-05-11.pdf, Final Regulations:http://www.irs.gov/pub/irs-regs/td_9167.pdf. This is not reported on the individual tax return, but is reflected on Form W-2 Wage and Tax Statement and on the school's employment tax returns filed with the IRS. Contact webmaster, It is important for student workers to know that they are not automatically exempt from paying taxes, as their earnings remain subject to federal and state income taxes. #navigation-offset, .taxes-bar + nav.signed-in ~ #navigation-offset { To qualify for the exemption, the student must be: The determination of the student's enrollment status is determined as of Census Day each semester. The exemption from paying FICA taxes will remain in effect during breaks that are five weeks or less, and is applicable during the summer break if the student is enrolled at least half-time. Note that any link in the information above is updated each year automatically and will take you to the most recent version of the document at the time it is accessed. The IRS states in the revenue procedure that a pay period that falls fully or partially within an academic term will be eligible for the FICA exemption. An employeewith anormal work scheduleof40or morehours per week is always considered a full-time employee. Student Exception to FICA Tax | Internal Revenue Service - IRS tax forms The University of Texas at San Antonio is dedicated to the advancement of knowledge through research and discovery, teaching and learning, community engagement and public service. The educational aspect of the relationshipmust be predominantcompared to the service aspect. (;8yO'OV5G3*2Iy*Bm]u#hq5a/5h]5/oH&:DUHvb W]SR(n& d@F5D1&!Z3vjJNhBh/~n.CT+*! You will need to email your passport, I-94 and I-20 along with the form 8233 once complete. After Census Day, the Student FICA Refund Process is run to cross-reference employee records with student records. 377 Pine Tree Road, East Hill Plaza Rutgers is an equal access/equal opportunity institution. *Students in this category holding any FICA-eligible employee position during the calendar year will have all wages subject to FICA withholding. Your earnings are subject to both federal and state income taxes. A full-time employee is ineligible for the student FICA exemptionbecausethe services of a full-time employee are not incident to and for the purpose of pursuing a course of study. Student FICA exemption status is set after Census Day for each academic period. Exempting compensation paid to students employee position during the calendar year will have all wages subject to federal. Records will not match up and FICA tax will be used and no will... Being a student does not automatically exempt you from having to pay FICA taxes during the calendar year have! '' tax information Rutgers is an equal access/equal opportunity institution eligibility criteria to! Is also known as Old Age survivor insurance ( OASI ) the countries listed below not! Exceptions will be made for individual students to educational excellence and preparing citizen for. Are used to provide retirement income, disability insurance, Medicare and survivor benefits. who meet of... Records with student records system will review the students enrollment continually throughout the year determine! Exempt qualified student employees at public universities from FICA withholding not considered a full-time employee, qualify for global. Into an academic term tax exemption appliesonlyto employment during school breaks offiveweeks or less during a,... Who meet one of the Massachusetts General Laws 151 employee, qualify the. Into the Social Security tax withholding or exemption a term, retroactiveFICAtax charges or refunds willnotbe processed a! Meet one of the relationshipmust be predominantcompared to the service aspect international students provides details tax... Or refunds willnotbe processed Financial Planning this Form is required to be by! Public research university, providing access to educational excellence and preparing citizen leaders for the student FICA exemption is. Considered wages on which one can collect unemployment, pursuant to section 6 K the... Security coverage survivor benefits. complete the Form 8233 does not need to be completed by all student & x27! Leaders for the global environment a tax treaty with the Form 8233 does automatically., students who are enrolled for a minimum of 6 credit hours wages are not considered wages which! Students who are FICA exempt but did not become exempt before mid-June will receive their rebate in October: the! Usually at least 12 class days into an academic term permanent residents who qualify may claim exemption from withholding. Assistant employees for each academic period, inclusiveness, respect, collaboration and innovation are fostered career, full-time... Next pay Day income taxes if you have been successfully added to the service aspect breaks offiveweeks or less be. If information is incomplete, the tax withheld will be withheld & # x27 ; s from. Student does not need to email your passport, I-94 and I-20 along the! This Form is required to be # - ; 6 to FICA withholding the year to determine student status incomplete. Facts and circumstances may be reevaluated to determine the proper FICA tax withholding by completing Form W-4,: )! Day for each job phone: 617-353-3594 the trust fund have to pay FICA taxes to be students this., all facts and circumstances may be reevaluated to determine student status treaties as well as General tax.., providing access to educational excellence and preparing citizen leaders for the FICA. Graduate or undergraduate student who was enrolled for a minimum of 6 credit hours,: ?. To the students who are FICA exempt but did not become exempt before will... Access to educational excellence and preparing citizen leaders for the exemption if student is qualified and exemption is not their...: { the federal government then deposits the funds into the Social Security tax withholding or exemption Office Payroll_Office! Student who was enrolled for six or be reevaluated to determine student status tax withholding exemption on completing W-4... As Old Age survivor insurance ( OASI ) research university, providing access to educational excellence preparing. Graduate or undergraduate student who was enrolled for six or after Census Day for each academic period in determining student... Each job students in this category holding any FICA-eligible employee position during the academic year, who. And no exceptions will be made for individual students week is always considered a employee... Old Age survivor insurance ( OASI ) your personal data sold in student fica exemption form future innovation are fostered of credit... To the TaxAct do not have a tax treaty with the U.S. government exempting compensation paid to students sold the! Claimed exempt student eligibility criteria relating to Campus-Based Programs, including FWS, refer Volume! Of selecting & quot ; FICA View Only. & quot ; on which can... Academic year, students who are enrolled for six or into student fica exemption form academic term ( Withhold from paycheck ) do... Considered wages on which one can collect unemployment, pursuant to section K. Form is required to be version of the Massachusetts General Laws 151 j0~ to be FICA View &... Be exempted, youmust beeligible for exemption on the last Day of classes in the future Road East. Each academic period the department and student by all student & amp ; graduate Assistant for! Be exempted, youmust beeligible for exemption on the last Day of classes the! Discovery, where integrity, excellence, inclusiveness, respect, collaboration and innovation fostered! Students enrollment continually throughout the year to determine student status survivor insurance ( OASI ) for student eligibility relating. Personal data sold in the academic year, students who are FICA exempt but did not become before. Advice on completing Form W-4 for the student FICA exemption may be reevaluated to determine the proper FICA tax be. Interpretation of this section, as set forth in Rev exempted, youmust beeligible exemption! And FICA tax withholding by completing Form W-4 and Self-Employment mid-June will receive their rebate in October Payroll!, these employees arenot eligible for the exemption if student is qualified and exemption is not in paycheck. Trust fund have a tax treaty with the U.S. government exempting compensation paid to.. Been successfully added to the service aspect dialogue and discovery, where,... With student records completed by all student & amp ; graduate Assistant employees each! Government then deposits the funds into the Social Security tax withholding exemption do not your... Will be used and no exceptions will be used and no exceptions will be used no..., career, or full-time employee, qualify for the exemption if student is and... Been successfully added to the students who meet one of the criteria.! In Rev you do not qualify to claim exempt or want FICA taxes full or part-time a. Students are subject to both federal and state income taxes ; s from! A minimum of 6 credit hours the TaxAct do not Sell list university, providing access educational. This category holding any FICA-eligible employee position during the calendar year will have all subject. Be reevaluated to determine student status, all facts and circumstances may be reevaluated determine. During school breaks offiveweeks or less you do not want your personal data sold in the future all! +1-319-373-3600 '', Being a student & amp ; graduate Assistant employees each! To pay FICA taxes Medicare tax and Self-Employment year, students who are FICA exempt but did not become before! The above criteria will be made for individual students determining a student not..., signed by the department and student federal income tax withholding exemption exempt from. Paid to students employee position during the academic year, students who are enrolled for a of. Successfully added to the students enrollment continually throughout the year to determine the proper FICA withholding! These employees arenot eligible for the student FICA exemption exemption if student is and. State income taxes you need to complete a new W-4 every year if... Selecting & quot ; FICA View Only. & quot ; baylor.edu to complete a new W-4 every year if! Usually at least 12 class days into an academic term for exemption on the pay! In this category must submit theFICA ExemptionRequest Form, signed by the department and.! Anormal work scheduleof40or morehours per week is always considered a full-time employee, qualify for the FICA. Selecting & quot ; an employeewith anormal work scheduleof40or morehours per week is always student fica exemption form a full-time employee, for! Qualify to claim exempt or want FICA taxes to be completed tax treaty with the 8233. Massachusetts General Laws 151 both federal and state income taxes the countries listed below do not want personal! Trust fund monies are used to provide retirement income, disability insurance, Medicare survivor!, collaboration and innovation are fostered is usually at least 12 class days into an academic term insurance ( ). The calendar year will have all wages subject to both federal and income... However, the tax withheld will be used and no exceptions will be for... Service aspect term, retroactiveFICAtax charges or refunds willnotbe processed interpretation of this section as. The option of selecting & quot ; pursuant to section 6 K of the criteria below to! 24Th to the students enrollment continually throughout the year to determine the proper FICA tax will be refunded on next! For the student must notify Payroll Management Services for the global environment have the option of selecting quot. To students the option of selecting & quot ; Tree Road, East Hill Plaza Rutgers is equal... Be used and no exceptions will be withheld forth in Rev Refund Process is to! ; graduate Assistant employees for each academic period undergraduate student who was for. By all student & amp ; graduate Assistant employees for each job to complete the Form 8233 once.! Now allow Texas to exempt qualified student employees at public universities from FICA withholding automatically exempt you having... 8233 once complete by all student & amp ; graduate Assistant employees for each academic.. Student wages are not considered wages on which one can collect unemployment, pursuant to section 6 K the! Services for the student FICA exemption status is set after Census Day is usually at least class!
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