If an individual receiving social security retirement insurance benefits was hired as an employee of a state or political subdivision after March 31, 1986, are the services performed by the individual for the state or political subdivision subject to the medicare tax?
A1. Yes. The fact that an employee is receiving social security retirement insurance benefits does not affect the employee’s liability for the medicare tax. Q2.Are services performed by an election official or election worker for a state employer or political subdivision employer subject to the medicare tax? A2.Yes, unless the remuneration paid in a calendar year for such service is less than $100. Section 3121(u)(2)(B)(ii)(V) of the Code, added by section 1895(b)(18)(A) of the Tax Reform Act of 1986, 1986-3 (Vol. 1) C.B. 852. This amendment is effective for services rendered after March 31, 1986. EDITOR’S NOTE: The above section was amended in 1994 to increase the exclusion threshold for election workers and election officials from $100 to $1,000. The $1,000 exclusion threshold has been increased administratively by SSA to $1,100 for tax years 2000-2001 and to $1,200 for tax years 2002-2004. Q3. A township has a small number of regularly employed fire fighters. To assist these fire fi
