Government employee coverage varies for both parts of the FICA tax. Employee hiring dates can also be a factor in determining Social Security coverage. Employees may be subject to 1.45% Medicare (HI) tax only, but are never subject to only 6.2% Social Security tax. The amendment to the Social Security Act of 1950 allowed state and local governments to choose coverage for their employees who were not already covered by a pension scheme (in effect from 1951 onwards). The decision was taken by the state and the local government, not by the workers themselves, and was initiated by separate agreements between each state and the Social Security Administration. All States have concluded agreements. Some states provided coverage for most workers, while other states provided coverage for only a few workers. In Louisiana, the state treasurer is the social security administrator for Section 218 of the Social Security Act. Since 2 July 1991, most services provided by persons who are not members of the employer`s qualified pension system to state and local government employees are compulsorily covered by social security and health insurance, unless they are already covered by an agreement under article 218.

services provided by election workers and election officers that are below the legislated threshold for the calendar year; unless the agreement under section 218 applies to election workers. State and local government employees who served after the 31. Abandoned in March 1986, they are subject to compulsory coverage of the part of the FICA tax reserved for health insurance if they are not already covered by full social security under an agreement under Article 218. Employees hired before April 1, 1986 will only receive health insurance coverage if there has been a disruption of employment and the employee has been reinstated after March 1, 1986. An Article 218 agreement is a voluntary agreement between the state and the Social Security Administration (SSA) to provide Social Security and Medicare (HI) coverage or Medicare HI only to employees of state and local governments. These agreements are called “Article 218” agreements because they are authorized by Article 218 of the Social Security Act. Article 218 Agreements are irrevocable. All States, including the 50 States, Puerto Rico, the Virgin Islands and about 60 intergovernmental instruments, have an Article 218 agreement with the SSA.

These agreements allow states, if they wish, to provide Medicare (HI) or Medicare HI social security and hospital insurance coverage only for public employees. Is the employee subject to an agreement under section 218 or an amendment to amend the agreement? Some employers may not correctly apply the terms of coverage to their employees. This leads to false reports, including undeclared or erroneous reports. Once a misrepresentation occurs, it often continues until the Social Security Administration or irS is involved. usually during claims processing or during audits and audits. All services in any category or category of positions of your choice, The employment relationship with this employer has been uninterrupted since March 31, 1986. Amendment No. 515 affected the board of governors of state colleges and universities (now the University of Louisiana system) effective May 1, 1975, excluding elective positions, part-time positions, the fee base, agricultural labor, or students. This change affected the services of the Teachers Retirement System of Louisiana and the State Employees Retirement System, which are not eligible to be affiliated with such pension plans.

Does compulsory social security apply to employees? The effective date of coverage is the date specified in the section 218 agreement or amendment for the beginning of coverage. Full social security coverage (compulsory social security tax) has been abolished by 2. July 1991 for state and local government employees who are not affiliated to an eligible public pension plan (FICA replacement plan) and who are not covered by an agreement under Article 218, unless there is a specific exclusion under the law. A list of specific exclusions is provided in Chapter 5: “Social Security and Health Insurance Coverage” of Publication 963. PDF Each state has a designated official, the state social security administrator, who is responsible for administering the agreement under article 218 of the state and overseeing the referendum process. The state administrator provides public employers with information and advice on Social Security and medicare coverage for employees of state and local governments. Contact the state administrator of your local government employee or state who will be employed after the 31st. March 1986 or rehired: The employee is insured for Medicare unless there is a specific exclusion In 1986 and 1991, Congress made significant legislative changes to the Social Security Act and the Internal Revenue Code that require Social Security and Medicare coverage for certain public employees. These changes have greatly increased the role and responsibilities of state and local employers. Under the act, certain services to employees are compulsorily excluded from social security by virtue of an agreement under Article 218. .