Effective Dates: 01/29/2020 - Present Previous | Next

TN 2 (01-20)

SL 70001.701 Wages

CITATIONS:

Social Security Act, Section 209

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:

To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/1970001701
SL 70001.701 - Wages - 01/29/2020
Batch run: 01/29/2020
Rev:01/29/2020