3.96 C. Taxable Income and Social Security Wages

Certain types of compensation are considered IMRF earnings even though not taxable income or Social Security Social Security coverage for IMRF members is required, except for a limited number of firefighters and police officers, by an agreement between the State of Illinois and the Commissioner of Social Security under Section 218 of the Social Security Act. IMRF members pay Social Security taxes on wages up to the wage base, and IMRF employers pay an equal amount. IMRF employers remit these taxes to the Internal Revenue Service. Applications for benefits and questions about Social Security should be directed to the local Social Security district office or representative or call 1-800-772-1213. wages. Conversely, certain types of compensation are not included as IMRF earnings even though taxable and reportable as Social Security wages.

You should refer to pertinent IRS publications to determine the tax and Social Security treatment of all types of compensation. We refer to several IRS publications in the following paragraphs. To order these publications, go to the IRS Website at www.irs.gov or call the IRS toll-free number 1-800-TAX-FORM (1-800-829-3676).