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).
Before November 10, 1988, SSA accepted a determination by the heads of other Federal
agencies as to whether such individuals were Federal employees. Such determinations
were for Social Security coverage purposes and not for purposes of taxation.
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.