TN 12 (09-23)

SL 30001.356 Required Exclusions

The following services are required to be excluded from Section 218 coverage:

  • Services performed by individuals hired to be relieved from unemployment. (This does not include many programs financed from Federal funds where the primary purpose is to give the employee work experience or training.)

  • Services performed in a hospital, home or other institution by a patient or inmate thereof as an employee of a state or local government employer;

  • Services performed by an employee on a temporary basis in case of fire, storm, snow, earthquake, flood or other similar emergency;

  • Transportation services covered under Section 210(k) of the Act, see SL 30001.365;

  • Services that would be excluded if performed for a private employer because the work is not defined as employment under Section 210(a) of the Act (e.g., non-resident aliens with F-1, J-1, M-1, and Q-1 visas , see RS 01901.740).

Required exclusions apply to voluntary Social Security coverage situations (coverage via a Section 218 Agreement) and should not be confused with the different set of exclusions that applies to mandatory Social Security and mandatory Medicare situations.

A. Individuals Hired To Be Relieved From Unemployment

Generally, services performed by employees in work relief programs (other than the supervisory or administrative employees for projects) are excluded. The intent of the program establishes whether the program is designed to relieve individuals from unemployment. This is usually determined from the statutes or other authorities that established the program.

EXAMPLE 1: Services of welfare recipients performed in return for assistance payments are excluded from coverage because the primary intent of such work-relief programs is to provide assistance to needy individuals and their families.

EXAMPLE 2: Services performed by individuals under a work-training or work-study program which is designed to provide work experience and training to increase the employability of the individual are not excluded because the primary intent of the programs is not to relieve from unemployment.

B. Services Performed In A Hospital Home Or Other Institution

A patient is an individual undergoing treatment or receiving care in an institution. An "inmate" is an individual who lives in the institution either because they were committed or chose to enter voluntarily. Mental hospitals, homes for alcoholics, veterans' homes, and correctional institutions are examples of institutions involved in this exclusion.

Services performed outside the institution for the same unit of government which operates it are considered performed "in the institution." Further, services performed as part of the rehabilitative and therapeutic program of the institution are not covered if performed in the institution by a patient or an inmate thereof. However, where services are performed by individuals who are not patients in the institution but who are participating in the institution's rehabilitation program on a permanent basis, such individuals generally would be employees with respect to those activities and not qualify for this exclusion from coverage, see Social Security Ruling 77-5.

Generally, services performed by prison inmates of State or political subdivision prisons, or any instrumentality thereof, are also excluded from coverage under this required exclusion. Such services are excluded whether performed within the prison or outside prison confines.

Services performed by prison inmates in the employ of the private sector may be covered if an employment relationship exists and the conditions of coverage for the services performed for that entity are met. An employer/employee relationship exists when the entity for which the inmate performs services has the right to control and direct the inmate worker regarding the desired result of the work done and the details and means by which the work is accomplished. This includes the ability of the employer to select, dismiss, and control the worker inmate.

C. Emergency Services

Before January 1, 1968, emergency services were an optional exclusion. Beginning January 1, 1968, services by an individual hired as an employee serving on a temporary basis in case of fire, storm, snow, earthquake, flood, volcanic, or other similar emergency are excluded. In general, services performed because of an unforeseen event calling for immediate action are held to be emergency services. This exclusion applies to services of an employee who is hired because of the emergency to do work in connection with that emergency. The fact that employment is of short duration does not in itself establish that an emergency existed.

An individual who remains in a continuous employment relationship for the purpose of performing services whenever an emergency arose is not performing an emergency service.

State national guard members called to serve on a temporary basis as State employees in connection with one of the emergency situations described in this section are required to be excluded from coverage. If the State national guard is called out by the Governor to perform services in connection with riots, strikes or civil disorders, such services are mandatorily excluded from coverage.

The exclusion applies only to service on a temporary basis. Individuals who are in a continuing employment relationship for the purpose of working whenever an emergency arises are not performing emergency services on a temporary basis, e.g., firefighters.

D. Covered Transportation Services

Transportation services mandatorily covered for Social Security under Section 210(k) of the Act are excluded from coverage under a Section 218 Agreement.

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SL 30001.356 - Required Exclusions - 09/26/2023
Batch run: 09/26/2023