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Contents›I

Social Security and Medicare Coverage

Publication 963 — Federal - State Reference Guide: A Federal-State Cooperative Publication · 2026-10-03 edition · updated 2026-10-04 · United States

s discussed in Chapter 3, cash or noncash compensation for services is subject to income, Social Security and Medicare taxes unless certain exceptions apply. In addition, state and local employees may be exempted from Social

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▸Contents — Publication 963 — Federal - State Reference Guide: A Federal-State Cooperative Publication

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