A federally recognized tribe is an American Indian or Alaska Native tribal entity that is recognized as having a government-to-government relationship with the United States, with the responsibilities, powers, limitations, and obligations attached to that designation, and is eligible for funding and services from the Bureau of Indian Affairs. The Bureau of Indian Affairs publishes and periodically updates a list of federally recognized Indian tribes in the Federal Register.

The governing body of a tribe or group of Native American Indians that provides advisory and/or program services to members of the tribe.

Generally, the tribal council consists of elected tribal members who answer only to the members of the Indian tribe. However, clan mothers may appoint council members or members inherit their position. When council members receive a salary or stipend they are exercising governmental authority. No one controls or directs their actions.

Businesses owned and or controlled by an Indian tribal government. These entities include casinos, restaurants, medical clinics, housing authorities, gas stations, and a variety of other industries.

Based on IRS Revenue Ruling 59-354, payment for services of tribal council members in federally recognized Indian tribes does not constitute wages for tax purposes. Based on the same rationale as provided in Revenue Ruling 59-354, services performed by members of Indian tribal councils in their capacities as council members do not constitute employment under Section 210 of the Social Security Act, unless a tribal council has entered into an agreement for such coverage as explained below in B.2. Therefore, services performed by Indian tribal council members are not covered under Social Security and Medicare, unless a voluntary coverage agreement provides otherwise (as noted below in RS 01901.700.C.2).

Services performed by employees of tribal councils who are not tribal council members (e.g. administrative assistants, tax collectors, or justices of the peace), or by employees of the tribe, or by employees of tribal business enterprises are considered employment and are covered for Social Security. See RS 01901.710 for information on excluded tribal activity.

NOTE: We use earnings posted for members of Indian tribal councils for tax years 2005 and earlier in applicable benefit computations.

The tribal council members obtain coverage through a formal written agreement between the tribe and SSA. Once SSA approves the request, every member of the tribal council receives coverage. The agreement applies to all current and future members in tribal council positions, and cannot be modified or terminated.

a. The effective date of coverage is either:

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  the first day of the month after the month the agreement was executed by both parties; or

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  a later date specified by the tribe.

b. Retroactive coverage

In addition to future coverage, a tribe may request retroactive coverage for periods predating the effective date of the agreement. SSA will provide retroactive coverage, at the tribe's request, for any specific period that the tribe specifies on the agreement, which corresponds to tribal council member services for which the tribe:

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  timely paid taxes in an amount equivalent to what would have been due under the Federal Insurance Contributions ACT (FICA) in good faith; and

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  any specific period for which the Internal Revenue Services (IRS) did not issue a refund of these taxes.

SSA will not provide retroactive coverage if it is unable to verify that the FICA taxes were paid, and that the tribe did not receive a refund.

NOTE: If SSA approves the request for retroactive coverage, the retroactive coverage applies to any current or former tribal council members who made FICA-equivalent payments during the approved period(s) of retroactivity.