Prior to April 1, 1986, state and local government employees were subject to payment
of the full FICA tax, only if they were covered under a voluntary Section 218 Agreement.
Other state and local government employees paid no FICA taxes. Section 13205 of P.L.
98-272 amended the law to provide that state and local government employees who were
hired after March 31, 1986, and are not covered under a Section 218 Agreement, are
subject to the HI portion of the FICA tax.