If a worker earns the maximum creditable wage amount or higher in a calendar year
through employment with two or more State and local government entities that have
Social Security coverage under Section 218 agreements, how those earnings will be
credited – either as one Social Security maximum or in multiple amounts – is dependent
upon the employer identification number (EIN) used by each employer.
Where employers share the same EIN, there would be one Social Security maximum credited.
Social Security taxes should not be withheld for wages above the maximum creditable
Where the employers have different EIN’s, the wage amounts from each employer would
be taxed and credited separately up through the maximum creditable wage amount for
each EIN. In such cases, the employee is entitled to file for a refund of the overpaid
Social Security taxes when filing their personal income tax return (Form 1040). See
Department of the Treasury IRS Form 1040 “Instructions” available at the webpage for