Identification Number:
SL 70001 TN 2
Intended Audience:See Transmittal Sheet
Originating Office:ORDP OISP
Title:Covered Wages
Type:POMS Transmittals
Program:All Programs
Link To Reference:
 

PROGRAM OPERATIONS MANUAL SYSTEM
Part SL – State and Local Coverage Handbook
Chapter 700 – Covered Wages
Subchapter 01 – Covered Wages
Transmittal No. 2, 01/29/2020

Audience

Originating Component

OISP

Effective Date

Upon Receipt

Background

We are streamlining policy for clarity, merging sections, and archiving duplicate information. We are also amending the format in several of the sections, standardizing citations and abbreviations, and creating new policy to expand on existing sections for better understanding of content.

Summary of Changes

SL 70001.701 Wages

  • We amended the title to remove the word “Defined.”

  • We expanded and reformatted the section.

  • We added citation to the beginning of the section, formerly in RS 01505.030.

  • We created subsection A “Definition of wages” which contains information that was already in this section.

  • We created subsection B which contains information that was formerly in SL 70001.710. We are archiving subsection SL 70001.710.

  • We created subsection C which contains information that was formerly in SL 70001.720. We are archiving subsection SL 70001.720.

  • We created subsection D which contains information that was formerly in RS 01505.041B. A sentence of the content was rephrased for clarity purposes. We also added a NOTE, which contains content formerly in RS 01505.030.

SL 70001.710 Covered State and Local Government Employment

We archived this section and folded the content into newly created subsection B under SL 70001.701.

SL 70001.720 Payments for Periods Not Covered Under Section 218 Agreement

We archived this section and folded the content into newly created subsection C under SL 70001.701.

Conversion Table
Old POMS ReferenceNew POMS Reference
SL 70001.710SL 70001.701
SL 70001.720SL 70001.701

SL 70001.701 Wages

A. Definition of wages

Wages are a payment in cash or some other form for employment. The label given the payment (salary, fee, commission, etc.) and the basis for the payment is immaterial in determining whether it constitutes wages.

B. Wages covered

Services covered under a Section 218 Agreement or under the mandatory Social Security and Medicare coverage provisions constitute employment for Social Security purposes. Payments made to individuals in positions performing those services are covered wages.

C. Wages not covered

Generally, payments for services that are not covered under a Section 218 Agreement or the mandatory rules do not constitute covered wages.

Payments made on or after the effective date of coverage under a Section 218 Agreement for services performed prior to the effective date of coverage are not covered wages unless the services were performed in positions mandatorily covered for Social Security and Medicare or Medicare only.

D. Wage reporting

If the entity has a Section 218 Agreement, consider the information in this section.

1. If wages are reported

No further development as to the entity's status is necessary.

2. If wages are not reported

  • Obtain the views of the reporting official as to the reason for the non-reporting.

  • If necessary, make a determination regarding reporting and engage in development of the entity’s status per the wage development policy in RS 01404.003.

If the claimant's earnings record shows reporting for the relevant period but you cannot find the employer in the State's Section 218 Agreement, Modifications, or summaries, further development is necessary.

If the State’s Section 218 Agreement, Modifications, or summaries do not list the alleged employer, it does not mean that the entity has not been included under the State’s Agreement.

EXAMPLE: An entity not separately listed may be a part of a retirement system coverage group, or the employer may be an integral part of a political subdivision and included under the name of the parent subdivision.

NOTE: 

When payments are unique for State and local employment, use the following policies and procedures to evaluate the wages:


SL 70001 TN 2 - Covered Wages - 1/29/2020