TN 3 (05-04)

NL 00902.500 DCO Paragraphs - Self-Employment, Coverage Groups and Determinations

A. INTRODUCTION

This section consists of nine categories. They are self-employment, agricultural labor, domestic coverage, miscellaneous, non-profit organizations, state and local employment, Federal employment, military service, and railroad retirement.

B. LIST OF PARAGRAPHS

1. Self-Employment

 

SEI500 NON-COVERAGE PRIOR TO 1951

Before 1951, self-employed persons were not covered by Social Security.

 

SEI501 COVERAGE

Since 1951, most self-employed persons have been covered by Social Security if they had net earnings of at least $400 per year from their work. (Option a or b) .

 

Options:

  1. This coverage applies to all citizens and residents of the United States.

  2. In some cases, it may be possible to use a special computation method, based on gross earnings, to establish net earnings of $400.

 

SEI502 ALIEN RESIDENTS IN THE U.S.

If an alien is a resident of the U.S. and has earnings from self-employment, the earnings are counted for Social Security purposes regardless of where the money is earned.

 

SEI503 ALIEN REFERRAL

You may obtain further information about reporting self-employment income, plus any forms you may need, by contacting the Internal Revenue Service. You may contact the office where you filed your Federal income tax returns, or write to the Internal Revenue Service, 11601 Roosevelt Boulevard, Philadelphia, Pennsylvania 19255.

 

SEI504 EXPLANATION OF “NET EARNINGS”

The term “net earnings from self-employment” means a person's gross income for income tax purposes from a trade, business, or profession, minus allowable deductions. (Option, if applicable) .

 

Option:

This amount can also include a person's share of the ordinary net income or loss from any business in which he or she is involved as a partner. We do not include payments to limited partners, unless they are paid for services to or for the partnership.

 

SEI505 INCOME NOT INCLUDED IN NET EARNINGS

However, net earnings from self-employment for Social Security purposes do not include
(Option a through g) .

 

Options:

  1. farm rental income if the landlord does not materially participate in production of the crop.

  2. dividends on stock or interest on bonds or loans.

  3. retirement payments made by a partnership to a retired partner. (There are a few exceptions to this rule.)

  4. capital gains and losses.

  5. gains and losses from the disposition of property which is not stock in trade.

  6. payments made by a partnership to a limited partner, unless they are paid for services to or for the partnership.

  7. rental income.

 

SEI506 INCOME NOT REPORTED

Such income should not be reported for Social Security purposes.

 

SEI507 COVERAGE FOR CERTAIN OCCUPATIONS

Self-employed (Option a through l) are covered by Social Security. Coverage for this group began with taxable years ending after (Option a through l) .

 

Options:

  1. architects/1954

  2. engineers/1954

  3. accountants/1954

  4. funeral

  5. farmers/1954

  6. lawyers/1955

  7. dentists/1955

  8. osteopaths/1955

  9. chiropractors/1955

  10. veterinarians/1955

  11. naturopaths/1955

  12. optometrists/1955

 

SEI508 COVERAGE FOR MEDICAL DOCTORS

Self-employed medical doctors are covered by Social Security. Coverage for this group began with taxable years ending on or after December 31, 1965.

 

SEI509 REPORTING INCOME

Persons who have yearly net earnings from self-employment of $400 or more are required to report these earnings for Social Security purposes as part of their Federal income tax returns. This is true even though they do not owe Federal income tax.

 

SEI510 HOW TO FIGURE INCOME

An explanation of how to figure self-employment income is contained in the enclosed pamphlet.

 

SEI511 UNABLE TO CREDIT INCOME

We cannot add self-employment income for (year) to your earnings record. This is because you did not file your tax return on time and did not question your earnings record until (year) .

 

SEI512 COMPLETION OF SCHEDULE SE

Self-employed people must usually pay Social Security taxes on net earnings of $400 or more, up to the yearly maximum amount. They do this with their Federal income tax returns by completing Schedule SE (Computation of Social Security Self-Employment Tax) after figuring their net earnings on Schedule C or F. (Option a or b) .

 

Options:

  1. If both husband and wife are self-employed, they should each complete these schedules, regardless of whether they are filing separate or joint tax returns.

  2. If a person had net earnings of $400 or more for a year, and did not file Schedule SE as part of a tax return, he or she should contact the Internal Revenue Service. They will explain how to correct the omission.

 

SEI513 COVERAGE FOR SPOUSE

Before 1988, wives working for their husbands and husbands working for their wives were not covered by Social Security. If this work is part of the spouse's trade or business, it has been covered since 1988.

 

SEI514 SEI REPORTED UNDER MAIDEN NAME

You used your maiden name when you filed your tax return jointly with your husband. However, the Internal Revenue Service (IRS) assumed that your self-employment income was to be reported under your husband's surname rather than the name you used on the Schedule SE.

We have discussed this problem with the IRS and they are taking action to correct the name under which they send us information about your self-employment income.

 

SEI515 SEI POSTED UNDER INCORRECT SSN MORE THAN ONE YEAR

Our records show that reports of self-employment income were filed under your Social Security number. We have found that you are not the person who earned this income. Therefore, we are removing the following amounts from your earnings record:

 

Year          Amount

 

SEI516 SEI POSTED UNDER INCORRECT SSN ONE YEAR

Our records show that a report of self-employment income for (year(s)) was filed under your Social Security number. We found that you are not the person who earned this income. Therefore, we are removing the $(amounts) from your earnings record for (year) .

 

SEI517 BUSINESS PARTNERS

The facts in your case show that the business arrangement between you and (name) is considered a partnership by Social Security. Therefore, we have changed the amount of self-employment income on your earnings record (Option a or b) .

 

(Option c, if applicable)

 

Options:

  1. for (year) from $(amount) to $(amount) .

  2. as follows:

              Year       From       To

  3. We have also shown $(amount) as your share of the partnership income for
    (year) .

 

SEI518 PARTNERSHIP INCOME POSTED INCORRECTLY

We have found that you reported $(amount) in self-employment income for (year) , and that this was money you received as a limited partner in the business of (name of partnership) . You performed no services for this partnership. Payments to limited partners are covered by Social Security only if the payments are made for services to or on behalf of the partnership. Therefore, we have (Option a or b) .

 

Options:

  1. removed from your earnings record the $(amount) which you reported as self-employment income for (year) .

  2. reduced the amount of your self-employment income for (year) from $(amount) to $(amount) .

 

SEI519 INCOME INVESTIGATION COMPLETED

We have finished our review of your self-employment income for (year) .

 

SEI520 ALLOWABLE EXPENSE NOT DEDUCTED

We found that you did not deduct $(amount) for (type of expense) in (year) as an allowable business expense. You are required to deduct all allowable expenses when you figure your net earnings from self-employment.

 

SEI521 INTEREST AND DIVIDENDS INCLUDED IN NET EARNINGS

We found that you included (Option a, b or c) of $(amount) when you figured your net earnings from self-employment, and that you are not a securities dealer. This type of income can be included in net earnings only by securities dealers.

 

Options:

  1. interest

  2. dividends

  3. interest and dividends

 

SEI522 CAPITAL GAINS REPORTED

We found that you included $(amount) from the sale of (specify property) when you figured your net earnings from self-employment. The proceeds of this sale are capital gains because (specify property) (Option a or b) not stock in trade, and not for sale to customers in the normal course of business. Capital gains cannot be included in figuring net earnings.

 

Options:

  1. was

  2. were

 

SEI523 RENTAL INCOME REPORTED

We found that you included rental income from real estate of $(amount) when you figured your net earnings from self-employment. Rentals may not be included in figuring net earnings unless:

  • the rentals are received by a real estate dealer as part of a regular business, or

  • services are provided primarily for the convenience of tenants rather than for the owner.

Since your rental income from real estate did not meet either of these exceptions, you cannot include it in figuring your net earnings.

 

SEI524 OTHER INCOME REPORTED

We found that your income was from (specify source of income) . You cannot include this kind of income in your net earnings from self-employment.

 

SEI525 FARM RENTAL INCOME REPORTED

We found that you included $(amount) from farm rentals when you figured your net earnings from self-employment. This income can be included only if:

 

  • there is a farm rental agreement, and

  • the agreement requires you to materially participate in production of crops or management of production on the rented land.

 

SEI526 SOIL BANK PAYMENTS REPORTED

We found that you included $(amount) from soil bank payments when you figured your net earnings from self-employment. This income can be included only if the payments are made to a farm operator or to a farm landlord who participates materially in the farm operations. Since neither of these things is true, you cannot include the soil bank payments when you figure your net earnings. (Option, if applicable) .

 

Option:

We have enclosed a pamphlet which explains the requirements for farm landlords to participate in operations.

 

SEI527 NET EARNINGS NOT REPORTABLE

We found that you (Option a, b or c) from operating a (type of business) . Net earnings have to be at least $400 per year to be considered self-employment income for Social Security purposes.

 

Options:

  1. had net earnings of $(amount)

  2. had net earnings of less than $400

  3. suffered a loss

 

SEI528 NON-RESIDENT ALIEN CLAIMING INCOME

We found that you are neither a citizen nor a resident of the United States. Therefore, we cannot count your net earnings from self-employment for Social Security purposes.

 

SEI529 EARNINGS REPORTED AS INCOME

We found that you reported as self-employment income $(amount) which you earned as an employee. Income earned as an employee usually cannot be counted as self-employment income from a trade or business.

 

SEI530 MQGE REPORTED AS INCOME

We found that you deducted Medicare Qualified Government Earnings from your taxable self-employment income. We changed your record to show the following:

 

Year       Amount of Income

 

SEI531 PUBLIC OFFICIAL OTHER THAN A NOTARY PUBLIC

The $(amount) you reported for services performed as a (name of office held) in (year) does not count as self-employment income for Social Security purposes. Work in a public office is not considered to be part of a trade or business. The only exception to this rule is if the work

 

  • was for a State or local government, and

  • was compensated on a fee basis only, and

  • was not considered employment for Social Security purposes under Section 218 Agreement between SSA and the State.

The work you performed did not meet this exception.

 

SEI532 MQGE REPORTED AS INCOME

We treat the earnings of employees of State or local governments as self-employment income if their work

  • was compensated on a fee basis only, and

  • was not considered employment for Social Security purposes under Section 218 Agreement between SSA and the State.

  • This means that net earnings of $400 or more from such work should be reported to the Internal Revenue Service as self-employment income when a tax return is filed.

(Option, if applicable) .

 

SEI533 NOTARY PUBLIC REPORTED EARNINGS AS INCOME

The $(amount) you reported for services performed as a notary in (year) does not count as self-employment income. This is because service as a notary public is not considered a trade, business or profession for Social Security purposes.

   

SEI535 EARNINGS REPORTED AS INCOME BEING REMOVED ONE YEAR INVOLVED

Therefore, the $(amount) you reported as self-employment income for (year) is being removed from your earnings record.

 

SEI536 EARNINGS REPORTED AS INCOME BEING PARTIALLY
REMOVED
ONE YEAR INVOLVED

Therefore, we are reducing the amount of self-employment income on your earnings record for (year) from $(amount) to $(amount) .

 

SEI537 EARNINGS REPORTED AS INCOME BEING CHANGED

Therefore, we are changing the amount of self-employment income on your earnings record as follows:

Year        From        To

 

SEI538 EARNINGS REPORTED AS INCOME BEING REMOVED MORE THAN ONE YEAR INVOLVED

Therefore, we are removing from your earnings record the amounts you reported as self-employment income for the years shown below:

Year        Amount

 

SEI539 IRS NOTIFIED OF ADJUSTMENT

We will send a copy of our decision about your self-employment income to the Internal Revenue Service. They will make any changes that are needed to the tax record.

 

SEI540 PROPOSED LANGUAGE EXPLAINING THE DIFFERENCE IN MONEY AMOUNTS ON SCHEDULE SE (FORM 1040) AND IN SOCIAL SECURITY RECORDS.

Why Your Records May Differ from Ours

Starting with taxable years beginning after 1989, the law changed the way you figure net earnings from self-employment for Social Security purposes. Now, self-employed people must deduct 7.65 percent from their net profit from self-employment when they figure their net earnings for Social Security.

To make this calculation, multiply the amount on the net profit line of Schedule SE (Form 1040) by .9235 (100 percent less 7.65 percent). The result is net earnings from self-employment for Social Security purposes. We use this amount to:

  • figure Social Security benefits;

  • count Social Security work credits; and

  • decide if a working beneficiary can get benefits.

If you want more information about how this deduction is applied, contact the Internal Revenue Service and ask for Publication 533 (Self-Employment Tax).

In (1) , you reported your net profit from business as (2) on your tax return. Your net profit is reduced by 7.65 percent to get your earnings from self-employment of (3) . This is the amount shown on your Social Security earnings record for tax year (4) .

Options:

  1. Year

  2. Money amount reported

  3. Money amount on earnings record

  4. Year

 

2. Agricultural Labor

AGR500 AGRICULTURAL LABOR NOT COVERED

Before 1951, agricultural labor was not covered by Social Security.

 

AGR501 HOW TO OBTAIN CREDIT FOR AGRICULTURAL LABOR

The enclosed pamphlet explains how agricultural employees may receive Social Security credit for their earnings.

 

AGR502 REQUIREMENTS NOT MET FOR COVERAGE OF AGRICULTURAL LABOR

We cannot add to your earnings record the earnings you received for agricultural labor from (employer's name) in the calendar quarter ending (month /day /year) , because you (Option a, b or c) .

Options:

  1. were paid less than $50 cash in that quarter

  2. worked less than 60 days in that quarter

  3. did not meet the rules for earning credit for agricultural labor during the years 1951 through 1954

 

AGR503 REQUIREMENTS FOR COVERAGE OF AGRICULTURAL LABOR QUALIFYING QUARTER

For the years 1951 through 1954, agricultural labor was covered by the (Option a or b) when the following requirements were met. First, an agricultural employee must have served a qualifying quarter by being employed an entire calendar quarter by the employer, in any kind of a job. Agricultural labor performed during this qualifying quarter was not covered. Second, he must have performed agricultural labor for the same employer on at least 60 days in the following quarter and have been paid $50 or more in cash. Agricultural labor in this quarter was covered and the cash pay counted for Social Security purposes.

Options:

  1. Act

  2. Social Security Act

AGR504 REQUIREMENTS FOR CONTINUING COVERAGE OF AGRICULTURAL LABOR

Once a farm worker met these requirements, his services for this employer continued to be covered in the second following quarter if he was paid $50 or more in cash, even though he did not work at least 60 days.

(Option, if applicable)

Option:

If the farm worker was employed the entire quarter, this employment served as a qualifying quarter for his work in the next quarter. However, if he worked less than 60 days in the quarter, he had to serve another qualifying quarter and meet the 60-day-$50 test in the next quarter before his services in that quarter would be covered.

AGR505 COVERAGE FOR AGRICULTURAL LABOR CASH PAY AFTER 1954

For the years 1955 and 1956, cash pay for agricultural labor counts for Social Security purposes if the employer paid the farm worker $100 or more in a calendar year.

AGR506 COVERAGE FOR AGRICULTURAL LABOR CASH PAID AFTER 1956

From 1957 through 1987, we counted cash pay for agricultural labor for Social Security purposes if one of the following was true:

The worker was paid $150 or more by one employer in a calendar year, or

He or she worked for one employer, and received cash pay figured on a time basis, such as hourly, daily or weekly pay.

AGR507 COVERAGE FOR AGRICULTURAL LABOR CASH PAID AFTER 1987

Beginning in 1988, we count cash pay for agricultural labor for Social Security purposes if one of the following is true:

  • The employer spends $2,500 or more in a calendar year for agricultural labor, or

  • The worker is paid $150 or more by one employer in a calendar year.

AGR508 COVERAGE FOR WORK PERFORMED INVOLVING CRUDE GUM

Services performed in connection with the production and harvesting of crude gum from a living tree, and the processing of crude gum into spirits of turpentine and gum rosin by the original producers of the crude gum is agricultural labor. (Option a or b) .

Options:

  1. This type of agricultural work was not covered by the Social Security Act before 1959.

  2. Beginning with 1959, cash pay for such work counts for Social Security purposes if the worker is paid $150 or more in a calendar year by an employer, or if he works for that employer on 20 or more days during the calendar year for cash pay figured on a time basis, such as by the hour, day, or week.

AGR509 EO CONDITION AGRICULTURAL LABOR NOT COVERED

Our records do not show that (employer name) reported your earnings for (year) . It appears that you may have been a farm worker for this employer. If so, your earnings record may not be credited with the earnings you received because such service was not covered by the Social Security Act before 1951.

AGR510 NO QUARTERS OF COVERAGE EARNED FOR AGRICULTURAL LABOR

We cannot add to your earnings record the earnings you received for agricultural labor from (employer name(s)) in (year(s)) because (Option A, B, C, D or E) .

Options:

  1. agricultural labor was not covered by Social Security before 1951.

  2. you were not paid cash wages. For Social Security purposes, we only count cash pay for agricultural labor.

  3. you were paid less than $100 cash in (Option a or b) . In 1955 and 1956, we counted cash pay for agricultural labor only if the employer paid the worker $100 or more in a calendar year.

 

Options:

  1. that year

  2. each of those years

D. Option (a or b) you were paid less than $150 cash and you did not work at least 20 days for that employer.

 

Options:

  1. that year

  2. each of those years

A. in (Option a or b) you were paid less than $150 cash and your employer did not spend at least $2,500 for agricultural labor.

 

Options:

  1. that year

  2. each of those years

AGR511 COVERAGE FOR HOUSEHOLD WORK ON A FARM

Beginning January 1, 1995, domestic employees on farms operated for profit are no longer treated as agricultural employees. Instead they are subject to the new domestic threshold. The current earnings threshold can be found in SSA’s Publication No. 05-10021 on Household Workers.

3. Domestic Coverage

DOM500 HOUSEHOLD WORK NOT COVERED BEFORE 1951

Before 1951, household services performed in an employer's private home were not covered by Social Security.

DOM501 REQUIREMENTS FOR HOUSEHOLD WORK COVERAGE 1951-1954

For the years 1951 through 1954, household services performed in or about the private home of the employer were covered under the Social Security Act only if the person was paid cash wages of at least $50 in a calendar quarter by one employer, and worked for that employer on 24 or more days in that quarter or the preceding quarter.

DOM502 REQUIREMENTS FOR HOUSEHOLD WORK COVERAGE AFTER 1955

Since 1955, household services are covered by Social Security if (Option a or b) paid cash wages of at least $50 by an employer in a calendar quarter (Option c, if
applicable)
.

Options:

  1. you were

  2. the person was

  3. regardless of the number of days worked

DOM503 HOUSEHOLD WORK COVERAGE EXPLANATION

Services performed by household workers have been covered by Social Security since 1951. However, the worker must meet certain requirements to be covered. We explain the requirements and how the earnings should be reported in the enclosed pamphlet, (title) .

DOM504 WORK CREDIT EARNED DOMESTIC

The enclosed pamphlet explains how domestic workers may receive credit for their earnings.

DOM505 WORK CREDIT EARNED HOUSEHOLD

The enclosed pamphlet contains more information about reporting the earnings of domestic workers in a private household.

DOM506 NO QUARTERS OF COVERAGE EARNED FOR HOUSEHOLD WORK

We cannot add to your earnings record the earnings you received from (employer's name) for household services (Option a, b or c) . This is because you (Option d or e) in (Option f, g or h) .   (Option i, j or k, if applicable)  

Options:

  1. in the calendar quarter which ended (date)

  2. in the calendar quarters which ended (date) and (date)

  3. from (date) through (date)

  4. were not paid at least $50 in cash

  5. did not work at least 24 days

  6. that period

  7. either of those quarters

  8. any of the calendar quarters during that period

  9. From 1951 through 1954, we count earnings for domestic service if the worker is paid cash wages of $50 or more in a calendar quarter. Also, the services for this employer must have taken place during at least 24 days in that same calendar quarter, or in the quarter which preceded it.

  10. Beginning with 1955, we count a domestic worker's wages if the worker is paid cash wages of at least $50 by the employer in a calendar quarter.

  11. We give a worker credit for household work only if the worker is paid cash wages of at least $50 by the employer in a calendar quarter.

DOM507 NO QUARTERS OF COVERAGE EARNED FOR NONCASH PAY FOR HOUSEHOLD WORK

We cannot add to your earnings record the value of (specify type of noncash pay received) that you received from this employer for domestic service. For this kind of service, we count only cash pay for Social Security purposes.

DOM508 COVERED FAMILY EMPLOYMENT

We can give Social Security credit for services which a (Option a or b) performs for a (Option c or d) if a genuine employment relationship exists between them. This relationship exists if the (Option c or d) has the right to direct the (Option a or b) 's service, including the results of the service and how it is done. Unless this right exists, there is no employment relationship, and the earnings should not be reported for Social Security purposes.

Options:

  1. mother-in-law

  2. father-in-law

  3. son-in-law

  4. daughter-in-law

DOM509 COVERED HOUSEHOLD SERVICES PERFORMED FOR FAMILY

After 1967, domestic service is covered by Social Security when performed by a parent in the private home of the employing son or daughter who:

  • has a son, daughter, step-son, or step-daughter who lives in the home,

  • the child is under age 18 or, if older, has a mental or physical condition that requires personal care by an adult for at least 4 continuous weeks during the calendar quarter in which the service is performed,

  • the employer is a widow or widower, or is divorced and not remarried; or the employer's spouse is living at home but has a mental or physical condition that makes it impossible to care for the child for at least 4 continuous weeks during the calendar quarter, AND

  • a genuine employment relationship exists between the employer and the parent. This relationship exists if the employer has the right to direct the parent's services, including the results of the services and how it is done. Unless this right exists, there is no employment relationship, and the pay should not be reported for Social Security purposes.

DOM510 REQUIREMENTS FOR CHILD/PARENT EMPLOYMENT COVERAGE

Before 1988, service performed by children for their parents is not covered by Social Security unless the child is age 21 or older. Beginning in 1988, however, service performed by children age 18 through 20 in the parents' trade or business is covered.

(Option, if applicable)

Option:

Work for "in-laws" has always been covered as long as a genuine employment relationship exists. This relationship exists if the employer has the right to direct the service, including the results of the service and how it is done.

DOM511 NO QUARTERS OF COVERAGE EARNED FOR FAMILY EMPLOYMENT REQUIREMENTS NOT MET

We have considered the facts in the case, and found that your service for (employer's name) in (year) is not covered by Social Security because the service was done for your (Option A through F) . (Option G or H) .

Options:

  1. father, and you were under age 18

  2. mother, and you were under age 18

  3. wife

  4. husband

  5. son, but was not part of his business

  6. daughter, but was not part of her business

  7. Therefore, we (Option a or b) the earnings you received for this service to your earnings record.

      Options:

    1. cannot add

    2. should not have added

  8. Therefore, we (Option a or b) the earnings you received before 1961 for this service to your earnings record.

 

Options:

  1. cannot add

  2. should not have added

DOM512 NON-COVERED FAMILY EMPLOYMENT BEFORE 1988

Before 1988, service performed by (Option a, b or c) was not covered by Social Security. We cannot add the earnings received for this work to a person's earnings record.

Options:

  1. a husband for his wife

  2. a wife for her husband

  3. a child under the age of 21 for his or her parents

DOM513 NON-COVERED FAMILY EMPLOYMENT BEFORE 1961

Before 1961, service performed by a parent for his or her (Option a or b) was not covered by Social Security. Earnings received for this service cannot be added to a person's earnings record.

Options:

  1. son

  2. daughter

DOM514 NO QUARTERS OF COVERAGE EARNED FOR FAMILY EMPLOYMENT REQUIREMENTS NOT MET

We have considered the facts in the case, and found that (Option A or B) . We (Option C or D) your earnings for this service to your earnings record.

Options:

  1. your service for (employer's name) is not covered because it is domestic work performed for your (Option a or b) and (Option c or d) .

     

    Options:

    1. son

    2. daughter

    3. does not involve taking care of your (Option a or b) 's child.

    4. does not meet the coverage rules for taking care of your (Option a or b) 's child.

  2. your (specify type of work) service for your (Option a or b) , (employer's name) , is not covered because it was not a part of (Option a or b) trade or business.

    Options:

    1. son/his

    2. daughter/her

  3. cannot add

  4. should not have added

DOM515 COVERAGE FOR FAMILY EMPLOYMENT PARENTS AFTER 1960

After 1960, a parents' service performed as part of their children's trade or business under an employment relationship is covered by Social Security. (Option A or B) .

Options:

  1. However, domestic service performed in the (Option a or b) home is normally not covered. Beginning in 1968, there is an exception to this rule for some cases where a parent is caring for a child of the (Option a or b) . Several requirements must be met for the exception to apply.

     

    Options:

    1. son's/son

    2. daughter's/daughter

  2. However, (specify type of work) service which is not part of the (Option a or b) trade or business is not covered under Social Security.

     

    Options:

    1. son's

    2. daughter's

DOM516 NON-COVERAGE FOR STUDENTS

Beginning January 1, 1951, service performed by a student working for a school, college or university where he or she is enrolled and regularly attending classes at that school is not covered by Social Security. We found that while you worked for (employer's name /school) (Option a or b) , you were also attending classes. Therefore, these services are not covered, and (Option c or d) . However, an exception to this is if the school, college, or university is operated by a State or local government, the terms of the 218 coverage agreement between the State and SSA will determine whether student services are excluded.

Options:

  1. in (year)

  2. from (year) through (year)

  3. we are removing the following amounts from your earnings record: (fill in amounts removed)

  4. we cannot add the earnings to your earnings record

DOM517 NON-COVERAGE FOR NON-IMMIGRANT STUDENTS

Beginning in 1962 and later, certain services performed by nonresident alien students and certain nonresident exchange visitors and aliens admitted as part of a cultural exchange program are not covered by Social Security if the services they perform are to carry out the purpose for which they were admitted to the U.S.. We found that you worked for (employer's name) (Option a or b) in connection with your studies. Therefore, these services are not covered, and (Option c or d) . However, all other services are covered unless excluded by some other provision of law.

Options:

  1. in (year)

  2. from (year) through (year)

  3. we cannot add the earnings to your earnings record

  4. we are removing the following amounts from your earnings record: (fill in amounts removed)

DOM518 PERSON DETERMINED TO BE AN EMPLOYEE NO SEI REPORTED

We have completed our review of your service for (employer's name) from (date) to
(date) . The information we obtained shows that you performed services as an employee.
(Option a or b, if applicable) .

Options:

  1. Your earnings record will show $(amount) in (year) for this employment.

  2. Your earnings record will show the following amounts for this employment:

Period        Amount

DOM519 PERSON DETERMINED TO BE AN EMPLOYEE REPORTED AS SEI

We have completed our review of your work for (year or years) . Our records show you reported $(amount) for (year) (show information for each year, as applicable) as self-employment income. The information we obtained shows that you were not working as a self-employed person, but as an employee of (employer's name) from (date) to
(date) .

DOM520 INCORRECTLY REPORTED CHANGED TO WAGES

We are removing from your earnings record the amount which you reported as self-employment income, and will show this amount as wages. We will send a copy of our decision to the Internal Revenue Service, where any needed changes will be made to your tax record.

DOM521 WAGES ADDED

Since your work was performed as an employee, we are adding (Option a or b) .

Options:

$(amount) to your earnings record for this employment.

the following amounts to your earnings record:

Year        Amount

DOM522 EARNINGS FROM EMPLOYER'S RECORD EXPLANATION

The amounts shown above are based on the employer's record. We could not use the amounts you told us about, because you did not give us enough evidence to show that these amounts were correct.

DOM523 INVESTIGATION COMPLETED NO INCOME REPORTED

We have finished our review of your work for (employer's name) from (date) to
(date) . The information we obtained shows that you were not working as an employee, but as a self-employed person in a (Option a, b or c) .

Options:

  1. trade

  2. business

  3. profession

DOM524 DEFINITION OF AN EMPLOYEE

We define an employee as someone who works for a person who has the right to direct and control the work. The right to control includes the right to tell the worker what to do, as well as how, when and where to do it. The facts in your case show that your work was not under such control.

DOM525 DEDUCTING ALLOWABLE INCOME EXPENSES

In figuring net earnings from self-employment, all allowable business expenses must be deducted from the gross income. After deducting $(amount) for (year) , your net earnings are $(amount) for (year) . We have corrected your earnings record to show this.

DOM526 TIME LIMITS FOR FILING SELF-EMPLOYMENT

To receive credit for your income for (year) , you must file self-employment tax forms with your Internal Revenue Service office. (Option a or b) .

Options:

  1. You must do this within 3 years, 3 months, and 15 days after the end of the taxable year when the income was earned.

  2. You must do this within 60 days of the date you receive this letter.

DOM527 EXTENDED DEFINITION OF EMPLOYEE

Since 1951, the definition of "employee" includes (Option a, b or c) .

Options:

  1. agent or commission drivers who distribute certain types of laundry, or food other than milk. These drivers usually serve customers designated by the company as well as customers they get themselves. However, persons who buy merchandise on their own accounts and sell it as part of their individual businesses are not employees under this rule.

  2. full-time salespersons whose main business is soliciting life insurance or annuity contracts, and who work mainly for one company.

  3. full-time traveling or city salespersons whose main job is to take orders for merchandise for another person or company. The following requirements must also be met:

    • The salespersons obtain orders from wholesalers, contractors or retailers, or from businesses which furnish food or lodging, such as hotels or restaurants,

    • The salespersons work mainly for one employer (though they may work occasionally for someone else) , and

    • The merchandise is bought for resale or to be used as supplies in the customers' business operations.

    • A salesperson who acts as an independent business person, and is connected with several companies, is not considered an employee under this rule.

DOM528 NON-EMPLOYEE POSSIBLE EMPLOYEE UNDER SOCIAL SECURITY LAW

(Option a or b) who is not an employee under the common-law test may be an employee for Social Security purposes if he meets certain (Option c, if applicable) requirements. He must perform substantially all services personally, have no substantial investment in the facilities or premises used in connection with the performance of such service (other than in facilities for transportation) , and perform work on a continuing basis.

Options:

  1. A person in one of the above groups

  2. (fill in as appropriate)

  3. additional

DOM529 DEFINITION OF EMPLOYEE HOMEWORKERS

Since January 1, 1951, the definition of the term "employee" included homeworkers who meet all of the following requirements:

  • They work in their homes,

  • They follow the employer's directions, as part of a continuing work relationship,

  • They use material furnished by the employer,

  • They do not have a substantial investment in the facilities used to do the work,

  • They do most of the work personally, and

  • They return the finished product to the employer.

(Option, if applicable)

Before 1978, homeworkers meeting all these requirements received credit for Social Security purposes if they were paid at least $50 cash in a calendar quarter. Beginning in 1978, they receive credit if they are paid at least $100 cash in a quarter.

Option:

For the years 1951 through 1954, the work must also have met the licensing requirements of the State where the work was done. This meant that either the employer had a State license to employ homeworkers or the worker had a homework certificate.

4. Miscellaneous

MIS500 NO QUARTERS OF COVERAGE EARNED REQUIREMENTS NOT MET

We cannot add to your earnings record the pay you received from (employer's name) in (year(s)) or quarter(s) . This is because your work had no connection with (employer's name's) regular trade or business, and you (Option A, B or C) .

Options:

  1. were not paid at least $100 in cash by the employer in (Option a or b) .

     

    Options:

    1. that year

    2. each of those years

  2. were not paid at least $50 in cash by the employer in (Option a or b) .

     

    Options:

    1. that calendar quarter

    2. each of those calendar quarters

  3. did not meet the rules for getting Social Security credit for this kind of service in the years 1951 to 1954.

MIS501 COVERAGE REQUIREMENT FOR SERVICE UNRELATED TO BUSINESS

For the years 1955 through 1977, cash pay for service that had no connection with an employer's business was covered by Social Security if the worker was paid cash wages of at least $50 in a calendar quarter. Beginning in 1978, this type of service is covered if the worker is paid at least $100 in a calendar year.

MIS502 WAGES CREDITED WHEN PAID NOT WHEN EARNED

The wages of $(amount) which (employer's name) reported for you for (Option a or b) must remain on your earnings record for that year because that was when you were paid. We give credit for wages in the period when they were paid, rather than the period in which they were earned.

Options:

  1. (year)

  2. quarter ending (date)

MIS503 WAGES PAID NOT WAGES EARNED

You told us that part of the wages you earned from (employer's name) in (year) was not paid to you. Your earnings record is based on the wages which you were paid, rather than on wages earned. Therefore, your record is correct.

MIS504 NO EVIDENCE SUBMITTED

We cannot add to your earnings record the (Option a or b) which you said you were paid by (employer's name) for (Option c or d) , because you did not give us evidence that the wages were paid.

Options:

  1. wages

  2. additional wages

  3. (year)

  4. quarter ending (date)

MIS505 INSUFFICIENT EVIDENCE SUBMITTED

We cannot add to your earnings record the (Option a or b) which you said were paid by (employer's name) for (Option c or d) , because we do not have enough evidence to show that the wages were paid.

Options:

  1. wages

  2. additional wages

  3. (year)

  4. quarter ending (date)

ALERT: Briefly explain the employer contact or why no employer contact was made.

MIS506 ALLEGATIONS INCLUDE SICK PAY

The facts in your case show that the difference between your total pay and the wages your employer reported is the sick pay you received under the employer's plan. We did not count this kind of pay for Social Security purposes before 1982.

MIS507 SICK PAY AFTER 6 MONTHS

We cannot count the (Option a, if applicable) amount you received from (employer's name) for (year) for Social Security purposes. This is because the money was paid on account of sickness or disability while you were an employee, and it was paid more than 6 months after you stopped working. Therefore, we cannot (Option b or c) your earnings record.

Options:

  1. additional

  2. add this amount to

  3. leave this amount on

MIS508 TRAVEL PAY AND RELATED EXPENSES

We cannot count the amount which (employer's name) paid you as (Option a or b) for traveling or related expenses. Since this amount is not wages, we cannot add it to your earnings record.

Options:

  1. an allowance

  2. a reimbursement

MIS509 EMPLOYER DENIES EMPLOYMENT

We contacted this employer for evidence of your earnings, and were told that you had not worked there.

MIS510 EMPLOYER DENIES EMPLOYMENT DURING SPECIFIC PERIOD

We contacted this employer for evidence of your earnings, and were told that you had not worked there during (Option a or b) .

Options:

  1. (period)

  2. the period you mentioned

MIS511 NO EMPLOYER CONTACT TIME LIMIT PASSED NO EVIDENCE SUBMITTED

We did not try to contact this employer for evidence of your earnings because employers do not usually keep these records for more than 4 years.

MIS512 REQUEST FOR ADDITIONAL EVIDENCE

You may wish to give us more evidence of how much you earned.

MIS513 EXPLANATION OF EVIDENCE

The best evidence of your wages is one of the following:

  • A copy of your W-2 form, or

  • A signed statement from your employer.

If neither of these is available, we could use two kinds of the following original evidence:

  • Pay envelopes, check stubs, vouchers, unemployment compensation award letters, union records of dues and wages, or any other kinds of papers that show your earnings.

You can also get in touch with us if you need help getting proof of your wages.

MIS514 UNABLE TO DETERMINE COVERAGE FOREIGN EMPLOYMENT

We do not have enough information to decide whether you are working for an American employer or for a foreign affiliate of an American employer.

MIS515 FOREIGN EMPLOYMENT COVERAGE

After 1950, services performed outside the United States (U.S.) is covered by Social Security if the service is performed by a citizen of the U.S. for an American employer unless it would be otherwise excluded under Section 210 of the Social Security Act. Beginning in 1984, services performed outside the U.S. are covered if the work is performed by a U.S. resident unless it would otherwise be excluded under Section 210 of the Social Security Act if performed in the U.S.

MIS516 DEFINITION OF AN AMERICAN EMPLOYER

For Social Security purposes, an American employer is any one of the following:

The United States or any instrumentality of the U.S.,

  • A State or a political subdivision of a State,

  • A person who is a resident of the U.S.,

  • A partnership in which two thirds or more of the partners are residents of the U.S.,

  • A trust in which all trustees are residents of the U.S.,or

  • A corporation organized under the laws of the U.S. or of any of its States.

MIS517 COVERAGE AGREEMENT FOR WORK FOR FOREIGN AFFILIATES

Beginning April 20, 1983, Social Security coverage applies to some U.S. citizens and residents who are working outside the U.S. for a foreign affiliate of an American employer. This coverage applies if the employer has made an agreement for Social Security coverage with the Treasury Department . The agreement would apply to U.S. citizens and residents who are performing services that are covered in the United States.

In some cases, an agreement between an employer and the Treasury Department might not apply because of the terms of an international Social Security agreement.

MIS518 DEFINITION OF FOREIGN AFFILIATE

For Social Security purposes, we define a "foreign affiliate" as a foreign entity in which an American employer has at least a 10 percent interest.

MIS519 EMPLOYER REFERRAL COVERAGE AGREEMENT

You should get in touch with your employers to see if an agreement with the Treasury Department exists.

MIS520 COVERED EMPLOYMENT FOR FOREIGN GOVERNMENT INSIDE U.S.

A U.S. citizen employed in the U.S. by a foreign government, its instrumentality, or an international organization, is deemed to be self-employed. This means that if a person has net earnings of $400 or more in a year, the earnings must be reported to the Internal Revenue Service, and Social Security contributions must be paid.

MIS521 INCOME FROM RENTAL OF REAL ESTATE EXCLUDED

The income from certain types of financial transactions is not included in net earnings from self-employment. One type that is excluded is income from renting real estate (including farms) . Rental income is included only for persons who are real estate dealers.

MIS522 INCOME FROM RENTAL OF APARTMENTS EXCLUDED

We consider the rental of apartments to be the rental of real estate as long as no services are provided for tenants other than those which landlords normally provide. Examples of such services are maintenance, janitor service, and trash collection.

MIS523 INCOME FROM RENTAL OF APARTMENTS INCLUDED

However, if the landlord provides services primarily for the convenience of the tenants, the income might not be considered rental from real estate. Such earnings would be included in figuring net income from self-employment.

MIS524 INCOME INCLUSIONS

Net earnings from self-employment usually include income from the following sources:

  • Operating hotels, motels, tourist r courts, AND

  • Operating apartment houses which provide hotel-type service.

MIS525 MINISTERS NOT COVERED PRIOR TO 1955

Services performed by a duly ordained, commissioned, or licensed minister of a church in the exercise of his ministry are not covered by the Social Security Act. However, these services are treated as self-employment for Social Security purposes.

MIS526 DEFINITION OF MINISTERS' SERVICES

The phrase "in the exercise of his ministry" refers to the following types of services performed by ministers:

  • Services performed in the conduct of religious worship and the ministration of sacerdotal functions. The nature of the organization for which such services are performed is immaterial.

  • Services performed in the control, conduct, and maintenance of a religious organization that is under the authority of a religious body constituting a church or a church denomination or of an organization operated as an integral agency of such religious organization.

  • Services described above, performed for an organization which is neither a religious organization under the authority of a religious body constituting a church denomination, nor an organization operated as an integral agency of such a religious organization when the services are performed pursuant to an assignment or designation by his church or church denomination.

MIS527 NO QUARTERS OF COVERAGE FOR MINISTERIAL WORK

After considering the evidence obtained, we have determined that the earnings you received from (employer's name) in (year) cannot (Option a or b) credited to your earnings record because the services were performed (Option c or d) . Such work is not covered by the Social Security Act .

Options:

  1. be

  2. remain

  3. in the exercise of your duties as a minister

  4. as a member of a religious order in the exercise of duties required by such order

MIS528 MINISTERIAL WORK COVERAGE

Services performed by ministers are deemed to be self-employment for Social Security coverage purposes for the following individuals:

  • Ordained, licensed or commissioned ministers,

  • Christian Science practitioners, and

  • Members of religious orders who have not taken a vow of poverty.

Coverage is automatic after 1967, except for clergy who asked for and received an exemption from the Internal Revenue Service. Clergy who had requested coverage before 1968 cannot ask for exemption from coverage. (Option a or b) .

Options:

  1. The enclosed pamphlet contains more information about the coverage of clergy by Social Security.

  2. You may obtain more information about coverage requirements by contacting us or by contacting the Internal Revenue Service.

5. Nonprofit Organizations

NPO500 NONPROFIT ORGANIZATIONS NOT COVERED

Before 1951, services performed by employees of nonprofit (Option a through f) organizations are not covered by Social Security. Earnings received for such service is not counted toward benefits.

Options:

  1. charitable

  2. religious

  3. educational

  4. scientific

  5. literary

  6. humane

  7. (fill in, as appropriate)

NPO501 NONPROFIT ORGANIZATIONS VOLUNTARY COVERAGE

From 1951 to 1983, nonprofit (Option a through f) organizations could obtain coverage for most of their employees on a voluntary basis by waiving the Social Security exemption.

Options:

  1. charitable

  2. religious

  3. educational

  4. scientific

  5. literary

  6. humane

  7. (fill in, as appropriate)

NPO502 NONPROFIT ORGANIZATIONS PAMPHLET

You can learn more about changes in the coverage of nonprofit organizations by reading the enclosed pamphlet, (name of pamphlet) .

NPO503 NONPROFIT ORGANIZATIONS COVERAGE REQUIREMENTS

Prior to January 1, 1984, an organization which wanted to cover its employees had to complete the following actions:

  • File a waiver certificate (Form SS-15) and a List of Concurring Employees (Form SS-15a) with the IRS, and

  • Certify that at least two thirds of its employees (determined on the basis of facts as of the filing date of the SS-15) concur in the filing of the SS-15.

If both of these requirements were met, the employees who signed the SS-15a, as well as those hired afterwards, were covered by Social Security in every calendar quarter in which they earned at least $50.

NPO504 NONPROFIT ORGANIZATIONS COVERAGE EXCLUSIONS

Certain employees, such as ministers, members of religious orders, and students are not included among those who sign the Form SS-15a. Sometimes their type of service is specifically excluded from coverage.

NPO505 NONPROFIT ORGANIZATIONS COVERAGE FOR NEW EMPLOYEES

From September 13, 1960 through December 31, 1983, an organization could have requested coverage without getting the consent of employees. However, persons employed at the time of the request could be eligible only if they had signed the Form SS-15a with the IRS. Employees hired after the request were automatically covered under Social Security.

NPO506 FORM SS-15a NO SIGNATURE

The (name of organization) asked the Internal Revenue Service to waive its tax exemption and cover its employees under Social Security. However, your signature does not appear on the Form SS-15a. Since you were employed by the organization when Social Security coverage was requested, your service is not counted for Social Security purposes.

NPO507 NONPROFIT ORGANIZATIONS NO COVERAGE BEFORE 1951

Based on the facts you gave us, it appears that you worked for a nonprofit (type of organization) organization. Before 1951, this service was not covered by Social Security, and we cannot add your earnings to your record.

NPO508 TOTAL EXEMPTION

We cannot add to your earnings record your earnings from (name of organization) in
(year) . This is because you were performing services for a nonprofit (type of organization)
organization. (Option a, b, c or d) .

Options:

  1. This type of service is not covered by Social Security.

  2. From 1951 to 1983, nonprofit (type of organization) organizations could obtain coverage beginning (date) for most of their employees on a voluntary basis.

  3. The (name of organization) obtained coverage beginning (date) for most of its employees. Service performed for this employer prior to that date was not covered.

  4. The (name of organization) did not obtain Social Security coverage.

NPO509 CHURCH EMPLOYEES COVERAGE

Church employees, such as lay missionaries, usually do not have Social Security coverage as self-employed persons. However, from 1951 to 1983 their services could be covered as employment if the church for which they worked had requested for and obtained coverage.

In 1984, each church and church-controlled organization decided whether to treat its workers as employees for Social Security purposes. Workers who are not treated as employees have been covered by Social Security as self-employed persons since 1984.

6. State and Local Employment – PRE-1987 EMPLOYMENT

 

SLO500 NO COVERAGE BEFORE 1951

Before 1951, employees of State and local governments were not covered for Social Security under the Social Security Act.

 

SLO501 EARNINGS NOT LOCATED

Your record does not include earnings from (employer's name) (Option a or b) . This was when you worked for a (Option c or d) government.

 

Options:

  1. in (year(s))

  2. before (year or date)

  3. State

  4. local

 

SLO502 EARNINGS BEFORE 1951 NOT COVERED

Your record does not include earnings from (employer's name) (Option a or b) . This was when you worked for a (Option c or d) government. Before 1951, employees of State or local governments were not covered by Social Security. Therefore, we cannot add your wages to your earnings record.

 

Options:

  1. in (year(s))

  2. before (year or date)

  3. State

  4. local

 

SLO503 GENERAL EXPLANATION

State and local government employees are covered for Social Security and Medicare through a Section 218 Agreement between the State and the Social Security Administration or mandatorily under Federal law. 

SLO504 EXPLANATION OF COVERAGE BEFORE 1951

Social Security coverage for employees of State and local governments was first made possible by a law which took effect on January 1, 1951. The coverage did not include employees in positions under a retirement system.

Groups of employees can become covered by a Section 218 Agreement between the Soial Security Administration and the State. The State decides, within the limits of the law, which groups are to be covered under the agreement, and the date on which coverage can begin.

 

SLO505 PRE-1987 EMPLOYMENT OUTSIDE OF AGREEMENT NOT COVERED

The Section 218 Agreement between the Social Security Administration and (name of State) did not include coverage for employees of (name of entity) (Option, if applicable) . Therefore, your work for (name of entity) (Option, if applicable) was not covered by Social Security, and we cannot add your wages to your earnings record.

 

Option:

before (date)

 

SLO506 PRE-1987 -- NOT MEMBER OF RETIREMENT SYSTEM CASE DEVELOPED

The Section 218 Agreement between the Social Security Administration and (name of State) provides coverage for employees of (name of entity) beginning (date) , but restricts it to positions covered under the (name of retirement system) . The facts in your case show that your position was not under this retirement system. Therefore, your work for (name of entity) (Option, if applicable) was not covered by Social Security, and we cannot add your wages to your earnings record.

 

Option:

before (date)

 

SLO507 PRE-1987 NOT MEMBER OF RETIREMENT SYSTEM CASE NOT DEVELOPED

The agreement between the Social Security Administration and (name of State) provides coverage for employees of (name of entity) beginning (date) , but restricts it to positions which are covered under the (name of retirement system) . It appears that your position was not under this retirement system. If this is true, your work for (name of entity) (Option, if applicable) was not covered by Social Security, and we cannot add your wages to your earnings record.

 

Option:

before (date)

 

SLO508 EFFECTIVE COVERAGE DATE FOR SPECIFIC ENTITY

Social Security coverage was extended to include work for (name of entity) for positions covered under the (name of retirement system) beginning (date)

SLO509 PRE 1987 -- RETIREMENT SYSTEM REQUIREMENT CASE DEVELOPED

The facts in your case show that your work for (name of entity) in (year) was in a position under the (name of retirement system) . You had to be a member of this retirement system to obtain Social Security coverage.

However, you (Option a, b or c) . Therefore, your work for (name of entity) (Option d, if applicable) was not covered by Social Security, and we cannot add your pay to your earnings record.

 

Options:

  1. chose not to join this system

  2. were ineligible to join this system

  3. did not become a member of this system until (date)

  4. before (date)

 

SLO510 PRE -1987 -- RETIREMENT SYSTEM REQUIREMENT CASE NOT DEVELOPED

It appears that your work for (name of entity) in (year) was in a position under the
(name of retirement system) . You had to be a member of this retirement system to obtain Social Security coverage.

It also appears that you (Option a, b or c) . If this is true, your work for (name of entity) (Option d, if applicable) was not covered by Social Security, and we cannot add your pay to your earnings record.

 

Options:

  1. chose not to join this system

  2. were ineligible to join this system

  3. did not become a member of this system until (date)

  4. before (date)

 

SLO511 RETROACTIVE COVERAGE

Under the agreement between the Federal government and the State of (name of
State) , Social Security covers persons who were employees on (date controlling
retroactivity) and covers them back to (effective date) . Since you were not an employee on (date controlling retroactivity), your work before this date was not covered for Social Security purposes. We cannot add your pay for this period to your earnings record.

 

SLO512 RETROACTIVE COVERAGE AGREEMENT CHANGE

The State later changed its agreement to provide coverage back to (date) for persons who were (Option a or b) of (name of entity) on (date) .

 

Options:

  1. employees

  2. members

 

SLO513 RETROACTIVE COVERAGE DATE LIMITATION

Where coverage could begin retroactively, only persons who were employed on the date
(Option a, b or c) are covered for the retroactive period.

 

Options:

  1. the agreement was signed

  2. the agreement was changed

  3. chosen by the State

 

SLO514 RETROACTIVE COVERAGE NO QUARTERS OF COVERAGE DATE LIMITATION NOT MET

Since you were not an employee on that date, we have determined that your work for (name of entity) was not covered for Social Security purposes.

   

SLO518 COVERAGE AGREEMENT FOR EMPLOYEES UNDER A RETIREMENT SYSTEM

Beginning in 1955, under a Section 218 Agreement with the Social Security Administration, a State could extend Social Security coverage to employees covered by a State or local government retirement system after a favorable majority vote referendum was held by the State. (Option a or b)

 

Options:

  1. Later changes in the law allowed certain States and all interstate instrumentalities to extend Social Security coverage to only those members of the retirement system who voted “yes” for coverage.

  2. Later changes in the law allowed certain States to provide Social Security coverage for police and firefighters covered under a retirement system.

 

SLO519 INTERSTATE INSTRUMENTALITYPRE 1991 EMPLOYMENT

Interstate instrumentalities can extend Social Security coverage to its employees if the interstate instrumentality has a Section 218 Agreement with the Social Security Administration..

 

SLO520 COVERAGE AGREEMENT EFFECTIVE DATE

The Section 218 Agreement with the (name of entity in the agreement) provides coverage for (Option a or b) beginning (date) .

 

Options:

  1. employees

  2. members of the (name of entity retirement system)

 

SLO521 COVERAGE AGREEMENT EXCLUSIONS PRE-1987 EMPLOYMENT

The Section 218 Agreement with the (name of the entity) did not include (Option a or b) in (type of position ) positions .

 

Options:

  1. employees

  2. retirement system members

   

SLO524 NO QUARTERS OF COVERAGE FOR EMPLOYMENT PRE-1987 EMPLOYMENT

Therefore, (Option, if applicable) we cannot add your (year) wages from (name or entity) to your earnings record.

 

Option:

we have determined that

 

 SLO526 NO COVERAGE SPECIFIC PERIODS PRE-1987 EMPLOYMENT

Therefore, your work for (name of entity) (Option a or b) is not covered by Social Security.

 

Options:

before (date)

from (date) to (date)

 

SLO527 INFORMATION REFERRAL

If you want further information, you should get in touch with your State Social Security Administrator The State Administrator answers questions about Social Security coverage under the State’s Section 218 Agreement.

7. State and Local Government Employment

SL0600 MEDICARE COVERAGE

State and local government employees hired after March 31, 1986 earn credit for hospital insurance under Medicare. Employees hired before this date also earn credit for hospital insurance if their State has a Section 218 Agreement with the Social Security Administration.

 

SL0625 MEDICARE COVERAGE EXCLUSIONS

State and local government employee hired after March 31, 1986 earn credit for hospital insurance under Medicare. The following services are excluded from Medicare coverage:

  • Services performed by individuals hired to be relieved from unemployment. (This does not include many programs financed from Federal funds where the primary purpose is to give the employee work experience or training.)

  • Services performed in a hospital, home or other institution by a patient or inmate thereof as an employee of a state or local government employer.

  • Services performed by an employee on a temporary basis in case of fire, storm, snow, earthquake, flood or other similar emergency.

  • Services performed by non-resident aliens with F-1, J-1, M-1 and Q-1 visas.

  • Services in positions compensated solely by fees that are subject to SECA, the Self-Employment Contributions Act (unless Section 218 Agreement covers these services).

  • Services performed by a student enrolled and regularly attending classes at the school, college or university where they are working (unless Section 218 Agreement covers student services).

  • Services performed by an election worker or official whose pay in a calendar year is less than the amount mandated by law (unless Section 218 agreement covers election workers).

  • Services that would be excluded if performed for a private employer because it is not work defined as employment under Section 210(a) of the Social Security Act (unless Section 218 Agreement covers certain agricultural services).

Employees hired after March 1986 also earn credit for hospital insurance if their State has a Section 218 Agreement with the Social Security Administration..

8. Federal Employment

FDT500 MEDICARE COVERAGE

Most employees of State and local governments who were hired after March 31, 1986 earn credit for hospital insurance under Medicare. Some employees who were hired before this date could also earn credit for hospital insurance if their State had an agreement about this with the Federal government.

However, employees of State and local governments usually earn credit for cash benefits from Social Security only if the State has a coverage agreement.

ALERT: New government employees of the District of Columbia, Guam and American Samoa are also covered for Medicare under this law.

FDT501 MEDICARE COVERAGE EXCLUSIONS

Most employees of State and local governments who were hired after March 31, 1986 earn credit for hospital insurance under Medicare. There are some exceptions, such as work in a hospital or other institution by a patient or an inmate.

Some employees who were hired after March 1986 can also earn credit for hospital insurance if their State has an agreement about this with the Federal government.

However, employees of State and local governments usually earn credit for cash benefits from Social Security only if the State has made a coverage agreement.

FDT502 MEDICARE COVERAGE FEDERAL EMPLOYEES

Coverage under Medicare is intended to relieve the financial drain on the Medicare program. This occurred when governmental employees whose employment was not covered under Social Security became entitled to Medicare benefits through other covered employment or the entitlement of a spouse. The problem of Medicare entitlement is important because Medicare benefits, unlike Social Security benefits, are the same for all insured workers, regardless of the amount of a worker's covered earnings.

FDT503 FEDERAL EMPLOYEES NOT COVERED BEFORE 1951

Service performed for the Federal government before 1951 was not covered by Social Security and earnings you received for this service will not be counted toward benefits.

FDT504 FEDERAL EMPLOYEES COVERAGE

From 1951 through 1983, services performed by Federal employees who were not covered by a Federal retirement system could begin earning credit for Social Security benefits under certain conditions.

On or after January 1, 1984, service performed by Federal government employees who are covered by the Federal Employees’ Retirement System rather than the Civil Service Retirement System earn credit for cash benefits from Social Security.

FDT505 FEDERAL EMPLOYMENT COVERAGE REFERRAL

If you have any questions about the coverage of your Federal employment, please get in touch with an official of the (name of employing office, e.g., Office of Personnel
Management)
.

FDT506 POST OFFICE EMPLOYEES COVERAGE

Field service work for the Post Office was not covered by Social Security before 1955. Beginning January 1, 1955, generally all employees of the Post Office Department who are not covered by the Civil Service Retirement Act are covered under the Social Security Act.

FDT507 WORKS PROJECT ADMINISTRATION COVERAGE

Your service with the Works Projects Administration was work for the United States government. This type of work was not covered by Social Security.

FDT508 FEDERAL EMPLOYEES NO QUARTERS OF COVERAGE

We cannot add to your earnings record your earnings from (name of office) in (year(s)) . This is because service for (Option a or b) was not covered by Social Security before 1951.

Options:

  1. the United States government

  2. Federal instrumentalities.

FDT509 DISTRICT OF COLUMBIA EMPLOYEES COVERAGE

Most employees of (Option a or b) who are not covered under a Federal retirement system have been covered by Social Security since October 1, 1965. However, excluded are services performed by:

  • patients or inmates of D.C. hospitals or penal institutions;

  • student employees of D.C. hospitals other than medical and dental interns and residents in training;

  • employees serving on a temporary basis in case of fire, storm, flood or similar emergency; and

  • members of D.C. boards, committees, or councils, paid on a per diem, meeting, or other fee basis.

Options:

  1. the District of Columbia

  2. wholly owned instrumentalities of the District of Columbia

FDT510 GUAM, AMERICAN SAMOA AND COMMONWEALTH OF THE NORTHERN MARIANA ISLANDS (CNMI) EMPLOYEES COVERAGE

Beginning with 1961, services performed by employees in American Samoa are covered by Social Security under the same rules as people in the continental U.S. However, this coverage does not include employees of the Territorial government.

Services performed by government employees of Guam or any wholly owned instrumentality are covered if performed on or after January 1, 1973 by a temporary or intermittent employee who is not covered by a retirement system established by a law of Guam.

Services performed by government employees of the CNMI are covered if performed on or after January 1, 1987 by a temporary or intermittent employee who is not covered by a retirement system established by a law of the CNMI.

FDT511 NON-COVERAGE FOR GOVERNMENT EMPLOYEES WHO ARE COVERED BY ANOTHER RETIREMENT SYSTEM

Employees of the Government of American Samoa who are covered by a retirement system subject to U.S. law are not covered by Social Security.

FDT512 GUAM EMPLOYEES NOT COVERED

Services performed by permanent employees of the Government of Guam are not covered by Social Security. They can receive coverage only if the Governor of Guam requests it, and the Governor has not done so. Temporary and intermittent employees are covered under certain conditions.

FDT513 PHILIPPINES RESIDENTS WHO WORK IN GUAM COVERAGE

Service is excluded from Social Security coverage when performed in Guam by a resident of the Republic of the Philippines who works on a temporary basis as a nonresident alien covered under Section 101(a)(15)(H)(ii) of the Immigration and Nationality Act.

9. Military Service

MSV500 COVERAGE FOR 1940 THROUGH 1956

A veteran may receive a credit of $160 for each month of active United States military service from September 16, 1940 through December 31, 1956. This is explained in the enclosed pamphlet.

MSV501 WOMEN'S ARMY AUXILIARY CORPS

A former member of the Women's Army Auxiliary Corps may receive credits for her service if the following are true:

  • her service in the Auxiliary Corps took place between May 13, 1942 and September 30, 1943, and

  • she had active service in the armed forces after September 29, 1943.

MSV502 NO CREDIT GIVEN FOR YEARS BEFORE 1957 OTHER AGENCIES

We do not usually count military service wage credits prior to 1957 for Social Security purposes if the service was used by another Federal agency (other than the Veterans Administration) in figuring benefits to be paid by that agency.

MSV503 CREDITS AFTER 1956

Veterans who served on active duty after 1956 will receive a credit of $160 for each month of military service from 1951 through 1956, even though benefits based on this service are also paid by a military retirement system.

MSV504 CREDITS FOR 1951 THROUGH 1956

Veterans who served on active duty after December 1956 will receive a credit of $160 for each month of military service from 1951 through 1956, even though benefits based on this service are also paid by the (Option a, b, c or d) .

Options:

  1. National Oceanic and Atmospheric Administration retirement system.

  2. National Oceanic and Atmospheric Administration (formerly the Coast and Geodetic Survey) retirement system.

  3. National Oceanic and Atmospheric Administration (formerly the Environmental Science Services Administration) retirement system.

  4. Public Health Service retirement system for commissioned officers.

ALERT: The National Oceanic and Atmospheric Administration was formerly known as the Coast and Geodetic Survey and later as the Environmental Science Services Administration. Where the incoming shows one of the previous names, use the appropriate option to indicate the present and previous names.

MSV505 NO CREDITS CIVIL SERVICE RETIREMENT SYSTEM EXCEPTION

These credits may not be given unless this period of service is used to figure benefits from a Federal civilian retirement system.

MSV506 INFORMATION OBTAINED FROM OTHER FEDERAL AGENCIES

When someone files for benefits, we may use information from other Federal agencies to decide whether military service credits can be given.

MSV507 BENEFIT CREDITS EXPLANATION

We count wage credits for military service as earnings for purposes of figuring a Social Security benefit. However, we do not add the credits to a person's earnings record until he or she applies for benefits. At that time, information about military service should be given to us.

MSV508 BENEFIT CREDITS INCREASE

If you meet the requirements to receive wage credits for military service, the credits may help you to become insured for benefits or may increase your benefit amount.

MSV509 MAXIMUM CREDITS GIVEN

Since you have already received the maximum credit for your other work in the period ending (date) , you cannot receive any further credit for your military service in the same period.

MSV510 NO CREDIT BEFORE 1957

Before 1957, military service was not covered by Social Security.

MSV511 COVERAGE EFFECTIVE DATE

Beginning January 1, 1957, members of the armed forces of the United States could earn Social Security work credit while on active duty, including active duty for training. Beginning January 1, 1988, they could also earn credit while on inactive duty training.

MSV512 COVERAGE INCLUSIONS

Options:

  1. members of the regular Army, Navy, Air Force, Marine Corps and Coast Guard.

  2. Commissioned officers of the U.S. Public Health Service and the National Oceanic and Atmospheric Administration.

  3. members of the armed forces reserves.

  4. cadets at the U.S. Military, Air Force, or Coast Guard Academy, or midshipmen at the U.S. Naval Academy.

  5. members of the Reserve Officers’ Training Corps when ordered to annual training for 14 days or more.

  6. members of the National Guard, any State National Guard or State Air National Guard.

  7. regular or Reserve Corps of the Public Health Service.

  8. commissioned officer in the Coast and Geodetic Survey.

MSV513 ACTIVE DUTY TRAINING FOR RESERVISTS COVERAGE

Active duty for training means full-time duty for training by a member of the armed forces reserves. Services performed for this duty are covered and should be reported for Social Security purposes. (Option, if applicable)

Option:

Before 1988, weekly drill and other inactive duty training was not covered. Beginning in 1988, this training is covered while on leave without pay and is creditable under the Railroad Retirement Act.

MSV514 PAY STATUS EXPLANATION

The (name of Service Department) decides whether a member's service is covered as active or inactive duty. That Department also decides the period of service, the amount of pay to report, and the calendar quarters for which the earnings are reported.

MSV515 PAY AND CREDITS USED IN FIGURING BENEFITS

We may use both military earnings and additional military service credits when we figure your benefit amount. We will not count the service credits until you file for benefits. When you file, you may receive credits, depending on when you served.

  • From 1957 to 1977, you could earn an additional $300 for each calendar quarter in which you received any earnings for active duty.

  • Beginning in 1978, you could earn an additional $100 for each $300 earned on active duty. However, the additional amount cannot exceed $1200 for the year.

  • These credits are in addition to your basic earnings. The combined total of your basic earnings and credits cannot be more than the maximum earnings that are counted each year for Social Security purposes. (Option a or b, if applicable) .

Options:

  1. Basic earnings do not include (type of pay claimed) .

  2. The total amount shown on your W-2 form, Wage and Tax Statement , for (year) apparently includes amounts that are not basic earnings.

MSV516 BASIC PAY CREDIT

Only basic earnings for military service (Option a, if applicable) should be reported for Social Security purposes. (Option b or c, if applicable) .

Options:

  1. up to the maximum amount for each year

  2. Basic earnings do not include the value of food, clothing and shelter, special and incentive earnings, or allowances.

  3. Basic earnings do not include (type of pay claimed) .

MSV517 NO FORM W-2 SUBMITTED NO INVESTIGATION

It appears that the difference between the amount of earnings you say you received and the amount reported to Social Security for (year) was an amount other than basic earnings. We can count only basic earnings for Social Security purposes.

MSV518 FORM W-2 NO INVESTIGATION

It appears that the difference between the total pay shown on your W-2 form, Wage and Tax Statement , for (year) and the earnings shown on your earnings record was an amount other than basic earnings. Since the amount on the record corresponds to the amount of Social Security (FICA) tax as shown on your W-2, the military service on your record appears to be correct.

MSV519 DISCREPANCY INVESTIGATED

The facts in your case show that your total pay for (year) included (Option a or b) . Therefore, we cannot add any additional pay for (year) to your earnings record.

Options:

  1. pay other than basic pay

  2. (type of pay claimed)

10. Railroad Retirement

RRB500 RAILROAD RETIREMENT BOARD EARNINGS REPORTED

Earnings from work covered by the Railroad Retirement Act are reported to the Railroad Retirement Board rather than to the Social Security Administration. You can call them at their toll-free number 1-800-808-0772 to locate the RRB Field Office near you.

RRB501 RAILROAD BENEFITS 10 YEARS MINIMUM EMPLOYMENT

A railroad retirement benefit usually cannot be paid to a person who has fewer than 10 years of employment covered by the Railroad Retirement Act. Instead, we add railroad earnings after 1936 to Social Security earnings to see if the person is eligible for a benefit or an increased benefit from us.

RRB502 COMBINED RAILROAD RETIREMENT AND SOCIAL SECURITY BENEFITS

A change in the law in October 1974 resulted in a new method of figuring railroad benefits and eliminated payment