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

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QUICK REFERENCE GUIDE FOR PUBLIC EMPLOYERS MEDICARE 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 for social security and Medicare under a Section 218 Agreement? Yes Yes No Withhold social security AND Medicare taxes. Is employee a student2 OR an election worker3? Do not withhold Medicare tax (or social security). JIs employee a member of a qualifying public retirement system? 4 No Yes Yes Has the employee been in continuous employment with the same State or local government since before April 1, 1986? Withhold Medicare tax only No Do not withhold Medicare tax (or social security) Yes Yes 1 Is the employee covered for Medicare -only under a Section 218 Agreement? No 1 Mandatory Exclusions from Social Security and Medicare (FICA) coverage includes 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 self-employment tax (SECA) 2 Student enrolled and regularly attending classes at the school where services are performed 3 Election worker paid less than the mandatory coverage threshold ($1,600 in 2013) 4 Qualifies as a social security replacement plan. See section 4, Retirement Plans. 23