Agenda - Council - 03/11/2014 - Laserfiche WebLink

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PUBLIC EMPLOYERS OUTREACH GUIDE SOCIAL SECURITY COVERAGE This chart is meant as a guide only and is not a substitute for discussing difficult Section 218 coverage situations with your State Social Security Administrator or taxation issues with your IRS FSLG agent. Are services mandatory exclusions' from Social Security and Medicare coverage? No Are the services covered by a Section 218 Yes Yes 1 No No Withhold social security AND Medicare taxes. 1 Is employee a student2 OR an election worker3? Yes Do not withhold social security OR Medicare taxes. Is employee a member of a qualifying4 public retirement system? No Do not withhold social security OR Medicare taxes. Yes Do not withhold social security taxes Withhold Medicare -only if hired after March 31, 1986. Mandatory Exclusions from Social Security and Medicare (FICA) coverage Services performed: • by individuals hired solely to be relieved from unemployment • in a hospital, home or other institution by a patient or inmate • by workers hired on a temporary basis in case of fire, storm, snow, earthquake, flood, or other similar emergency • by non-resident aliens with F-1, J-1, M-1 & Q-1 visas • in positions compensated solely by fees that are subject to SECA (NOTE: These services may be covered by a 218 Agreement and subject to FICA.) • by students2 enrolled and regularly attending classes at the school where they are working (NOTE: These services may be covered by a 218 Agreement and subject to FICA.) • by election workers3 paid less than the threshold amount mandated by law (NOTE: These services may be covered by a 218 Agreement and subject to FICA.) • that are excluded from definition of employment in Section 210 of the Social Security Act 4Qualifying Public Retirement System — See information under "Pension Coverage" in this booklet. For more information and discussion of rehired annuitants, see Pub 963, Federal -State Reference Guide. 22