A federal plan to deduct Social Security taxes from College Work-Study student paychecks will not affect Penn State students since the University opted to pay the tax in 1956, a University official said Friday.

In the March 27 The Daily Collegian, Robert Evans, assistant vice president for student financial aid, said the federal plan -- being considered by a House of Representatives subcommittee -- would result in an income loss of 7.65 percent.

But CWS students already pay 7.65 percent of their total wages to the Social Security system, he clarified.

University employees have not always been subject to Social Security taxes, said Kenneth Babe, University corporate controller.

"Apparently, when the Social Security Act was set up in 1935, it excluded the University from coverage," Babe said.

The University's involvement with the Social Security program began in 1956 when the act was amended to include state employees, Babe said.

"At that time, the University elected to -- through the state -- become part of the Social Security system," he said.

If the current federal plan becomes law, universities which chose not to participate in the system in the mid-1950s could be forced to start paying the tax.

The plan would require state and local employees who are not participating in any other public employee retirement system to pay Social Security taxes, said Marty Guthrie, director of governmental affairs for the National Association of Financial Aid Administrators. A similar plan was rejected in 1987.

Marcella Romani (senior-accounting), who receives a work-study grant, said she does not really miss the money taken out of her paycheck to pay Social Security taxes.

"At all of the other jobs I've ever had, they've always taken it out," she said. "It's something you get used to because you're going to have to do it for the rest of your life."

But although the CWS program is supposed to be a federal grant, the government takes a certain percentage back, Romani said.

"They say they're giving you $1200, but in essence, they're only giving you $1100 because they're taking out almost $100," she said. "It's kind of weird."

Evans said Penn State students in the CWS program made more than $3.8 million last year, with nearly $300,000 of that amount taken out for Social Security taxes.

This year, Romani has 7.65 percent of her wages removed to pay Social Security taxes. An additional amount for federal taxes is also taken out of her paycheck.

"I got all the federal income tax back," Romani said. "I guess, in the long run, when I turn 65 -- if the Social Security system is still intact -- I'm going to get it all back."