Prior to 1987, SSA assigned identification numbers (sometimes referred to as "69-numbers") to identify State and local entities and interstate instrumentalities that obtained Social Security coverage under a Section 218 Agreement. Because SSA was responsible for processing the wage reports and accounting for the Social Security contributions paid by State and local government employers, this number was used for reporting and record keeping purposes through tax year 1986.
Beginning with wages paid after 1986, State and local government employers with Section 218 Agreements report Social Security and/or Medicare Qualified Government Employment (MQGE) wages under their IRS-assigned Federal Employer Identification Numbers (EINs).
Some States, on their own, assign and use 69-numbers for administrative recordkeeping purposes. If a State uses a 69-number and submits a Modification that extends coverage to one or more years prior to 1987, the State should notify the SSA regional office in a cover letter what 69-number(s) should be used for the newly covered entity. However, the State still needs to provide the EIN number assigned by IRS in the Modification.
If retroactive coverage involves periods prior to 1987, the State needs to make the deposit with a Federal Reserve Bank (FRB) or branch in the same manner that pre-1987 deposits were made. This is because those subsections of Section 218 of the Act that were repealed by Public Law 99-509 are still in effect for pre-1987 years and continue to govern deposits. If the State experiences problems with a FRB deposit, contact the SSA Office of Income Security Programs.