Court Leaves Open Whether Medical Residents Are Subject to Certain Payroll Taxes

By Katherine Mangan

A federal-court ruling last week gave new hope to the Detroit Medical Center, a teaching hospital that has been battling for years to convince the courts that it should not have to pay millions of dollars in Social Security and Medicare taxes for the medical residents who train there.

In a unanimous ruling, a three-judge panel of the U.S. Court of Appeals for the Sixth Circuit found that a lower court had