Governmental units and their employees in U.S. Territories generally are not subject to U.S. laws for Income Tax, or Federal Unemployment Tax (FUTA). They may be subject to social security and Medicare tax and employers are required to withhold these taxes from their employees in these areas and file information and employment tax returns. Governmental units in American Samoa, Guam, the Northern Mariana Islands, and the U.S. Virgin Islands, should consult Publication 80 (Circular SS) PDF , for more information about employment that is covered by these taxes, exemptions from tax and withholding and reporting requirements. Governmental employers in the Territories should contact the local tax authorities for laws relating to income tax. Guam Government employers and employees in Guam are generally exempt from social security and Medicare taxes, except for certain temporary and intermittent positions. See Publication 80. Commonwealth of the Northern Mariana Islands (CNMI) Government employers and employees in the Commonwealth of the Northern Mariana Islands are generally subject to social security and Medicare taxes. See Publication 80. American Samoa Government employers and employees in American Samoa are generally subject to social security and Medicare taxes unless they are covered by a retirement system. See Publication 80. U.S. Virgin Islands Governmental employees in the U.S. Virgin Islands are only subject to social security and Medicare taxes if they are covered by a section 218 Agreement with the Social Security Administration. See Publication 80. Puerto Rico Governmental employers in Puerto Rico are generally subject to social security and Medicare tax, either under mandatory coverage or a section 218 Agreement with the Social Security Administration. The Federal tax requirements for employers in Puerto Rico, including governmental employers, are discussed in Publicación 179 (Circular PR), Guía Contributiva para Patronos Puertorriqueños (in Spanish) PDF. This Spanish-language publication addresses the unique requirements and tax forms that should be used in Puerto Rico.