Where an individual performs services in connection with an activity carried on cooperatively by the Federal Government and any State or political subdivision, the Social Security Administration (SSA) determines whether the individual is an employee of the Federal government or of the State or political subdivision, see Social Security Act, (Act) Section 205(p)(1).

If SSA determines the individual is not an employee of the Federal government, SSA must determine whether the individual's services are covered under the State's Section 218 Agreement or under the mandatory Social Security coverage provisions in Section 210(a)(7)(F) of the Act. If there is a question concerning the identity of an employer, SSA will resolve coverage questions based on all pertinent information. The state administrator should work to provide this information as soon as possible.

An individual may perform services for an organization in connection with an activity carried on cooperatively by the State and one or more political subdivisions or by two or more political subdivisions.

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  If the organization is a separate political subdivision, the coverage of an employee is dependent upon whether the employees of the political subdivision are covered under the State's Section 218 Agreement or the mandatory Section 210(a)(7)(F) Social Security and Medicare coverage provisions.

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  If the organization is not a separate political subdivision, SSA must determine which political subdivision is the employer of the individual performing services, i.e., which entity actually hires, fires, and controls the performance of services. If one entity is the employer, the coverage of an employee is dependent upon whether that political subdivision's positions are covered under a Section 218 Agreement or whether that political subdivision's employees are covered under the Section 210(a)(7)(F) mandatory Social Security and Medicare coverage provisions.

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  If the organization is not a separate political subdivision, it may be an entity created by a joint venture of two or more political subdivisions in which no political subdivision has been designated as the employer. Generally, in such situations, all the participating political subdivisions are considered joint employers. The coverage of services performed by an employee under the State's Section 218 Agreement is then dependent upon the extent to which each of the joint employers has provided coverage for its employees under its Section 218 Agreement. Each employer which has covered its positions under a Section 218 Agreement is liable for reporting its pro rata share of the employee's wages, based on the proportion of the employee's salary each joint employer pays up to the taxable maximum. If the position is not covered as it relates to one or more joint employer, either under the State's Section 218 Agreement or under the mandatory Section 210(a)(7)(F) rules, then the employee receives only partial Social Security coverage based only on the pro-rated portion of the salary that is paid by those employers for whom the position is covered.