Basic (12-03)

SL 80001.825 Earnings Records for Tax Years 1978-1981

Prior to tax year 1982, State and local employers reported Social Security wages to SSA on a separate Form SSA-3963 (State’s Report of Wages Paid and used SSA-issued 69-numbers. Wages for 1978-1980 were reported on a quarterly basis; tax year 1981 was reported as an annual amount. Forms W-2, using an IRS assigned EIN, were also given to those employees for the same tax years to report income taxable wages, etc. SSA processed the forms SSA-3963 and posted the Section 218 Social Security covered wage information to the covered wage part of the earnings record under the 69-numbers and recorded the total compensation amounts from the W-2s to the noncovered part of the earnings record for the same employees and same tax years under the IRS-assigned employer identification number (EIN).

 

Therefore, for tax years 1978-1981, State and local employees in positions covered by a Section 218 Agreement, who were reported both on forms 3963 and timely filed forms W-2, have wages posted in both the covered and noncovered sections of the SSA earnings record. The fact that wages are posted as noncovered on the earnings record for those years does not mean an employee’s earnings record is incorrect or that covered wages are missing. The reported wages covered by Section 218 are posted on the SSA earnings records as covered wages and are used to determine each individual’s eligibility for Social Security and Medicare benefits.

 

State and local government employers reported Social Security covered wages for employees covered by a Section 218 agreement, using the SSA-issued 69-employer identification numbers until tax year 1986.

 

When an individual receives a Social Security Statement, only covered Social Security and Medicare wages are reflected on the Statement.