SL 60001.670 Cooperative State-Local Government Employment
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.
If the organization is not a separate political subdivision, it must be determined which political subdivision is the employer of the individuals performing services, i.e., which entity actually hires, fires, and controls the performance of services. If one entity is the employer, the coverage of the employees is dependent upon whether the employees of the political subdivision are covered under a Section 218 Agreement or the mandatory Social Security and Medicare coverage provisions.
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 none of those political subdivisions 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 the 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. Each employer must report up to the taxable maximum.