SECTION 6. EFFECTIVE DATE — Publication 963

This revenue procedure is effective with respect to service performed after July 1, 1991.

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Guide to the Citations in this Publication¶

Citation Source	Example	Purpose
Internal Revenue Code	IRC Section 132(a)(1)	Title 26 of the United States Code, the primary statutory authority for laws dealing with federal tax.
Treasury Regulation	Treas. Reg. Section 1.162-2(a)(2)	Provides guidance for new legislation or to address issues that arise with respect to existing Internal Revenue Code sections. Regulations interpret and give directions on complying with the law.
Treasury Proposed Regulation	Prop. Reg. 106897-08	Generally, regulations are frst published in proposed form in a Notice of Proposed Rulemaking (NPRM).
Treasury Decision	TD 9696	Document that contains the text of a fnal or temporary regulation
Revenue Procedure	Rev. Proc. 2020-1	An official statement of a procedure that affects the rights or duties of taxpayers or other members of the public under the IRC, related statutes, tax treaties and regulations and that should be a matter of public knowledge.
Revenue Ruling	Rev. Rul. 2012-25	An official interpretation by the IRS of the IRC, related statutes, tax treaties and regulations. It is the IRS conclusion on how the law is applied to a specifc set of facts.
Notice	Notice 98-03	A public pronouncement that may contain guidance that involves substantive interpretations of the IRC or other provisions of the law.
Announcement	Ann. 85-113	A public pronouncement that has only immediate or short-term value.
Private Letter Ruling	PLR 200437030	A written statement issued to a taxpayer that interprets and applies tax laws to the taxpayer’s specifc set of facts. It may not be relied on as precedent by other taxpayers or IRS personnel.
Technical Advice Memorandum	TAM 200222003	Guidance furnished by the Office of Chief Counsel to IRS personnel in response to an internal request concerning technical or procedural questions that develop during a proceeding.
Supreme Court Decision	269 U.S. 514 (1926)	Final decision on tax matter presented to Supreme Court from lower courts.
Social Security Act	42 U.S.C. Section 418	Original 1935 legislation establishing Social Security; now Title 42 of the United States Code.

107

Statutory Citations for State Enabling Laws
As of April 2020

State or U.S. Territory	Citation
Alabama	Code of Alabama, Title 36. Public Officers and Employees, Chapter 28, Social Security for State, Municipal, Etc., Employees, § 36-28-1, et seq.
Alaska	Alaska Statutes Annotated, Title 39, Public Officers and Employees, Chapter 30. Insurance and Supplemental Employee Benefts, Article 1, Old Age and Survivors Insurance, § 39.30.010, et seq.
Arizona	Arizona Revised Statutes Annotated, Title 38. Public Officers and Employees, Chapter 5. Social Security and Retirement, Article 1, Social Security for Public Officers and Employees, § 38-701 et seq.
Arkansas	Arkansas Code Annotated, Title 24. Retirement and Pensions, Chapter 1. General Provisions, Subchapter 2. Public Employees’ Social Security, § 24-1- 201, et seq.
California	Annotated California Codes, Government Code, Title 2. Government of the State of California, Division 5. Personnel, Part 4. Federal Old Age and Survivors’ Insurance, Chapter 1. General Provisions, Defnitions, Designation of Special Groups, Article 1. General Provisions and Defnitions, § 22000, et seq.
Colorado	Colorado Revised Statutes Annotated, Title 24. Government—State Public Employees’ Retirement Systems, Article 53. Public Employees’ Social Security, § 24-53-101, et seq.
Connecticut	Connecticut General Statutes Annotated, Title 5. State Employees, Chapter 66. State Employees Retirement Act, Part I. General Provisions, § 5-152 et seq.
Delaware	Delaware Code Annotated, Title 29. State Government, Part V. Public Officers and Employees, Chapter 57. Social Security, § 5701, et seq.
Florida	Florida Statutes Annotated, Title XXXVII. Insurance (Chapters 624-651), Chapter 650. Social Security for Public Employees 650.01, et seq.
Georgia	Code of Georgia Annotated, Title 47. Retirement and Pensions, Chapter 18. Social Security Coverage for Employees of the State and Political Subdivisions of the State, Article 1. General Provisions § 47-18-1, et seq.
Hawaii	Hawai‘i Revised Statutes Annotated, Division 1. Government, Title 7. Public Officers and Employees, Chapter 88. Pension and Retirement Systems, Part VI. Federal Social Security for Public Employees, § 88-211, et seq.
Idaho	Idaho Code Annotated, Title 59. Public Officers in General, Chapter 11. Social Security Benefts, § 59-1101, et seq.
Illinois	Smith-Hurd Illinois Compiled Statutes Annotated, Chapter 40. Pensions, Act 5. Illinois Pension Code, Article 21, Social Security Enabling Act 5/21-101, et seq.
Indiana	Annotated Indiana Code, Title 5. State and Local Administration, Article 10.1. Social Security Coverage for Public Employees, Chapter 1. Defnitions, 5-10.1-1- 1, et seq.
Iowa	Iowa Code Annotated, Title III. Public Services and Regulation [Chs. 80-122C], Subtitle 3. Retirement Systems [Chs. 97-98A], Chapter 97C. Federal Social Security Enabling Act, 97C.1, et seq.

108

Statutory Citations for State Enabling Laws
As of April 2020

State or U.S. Territory	Citation
Kansas	Kansas Statutes Annotated, Chapter 40. Insurance, Article 23. Old-Age and Survivors Insurance for Public Employees, 40-2301.
Kentucky	Baldwin’s Kentucky Revised Statutes Annotated, Title VIII. Offices and Officers, Chapter 61, General Provisions as to Offices and Officers; Social Security for Public Employees; Employees Retirement System, General Provisions, Social Security for Public Employees, 61.410, et seq.
Louisiana	Louisiana Statutes Annotated, Louisiana Revised Statutes, Title 42. Public Officers and Employees, Chapter 13. Old Age, Survivors, Disability, and Health Insurance, § 1001, et seq.
Maine	Maine Revised Statutes Annotated, Title 5. Administrative Procedures and Services, Part 21. Social Security for State and Municipal Employees, Chapter 431. Social Security for State and Municipal Employees, § 19001, et seq.
Maryland	Annotated Code of Maryland, State Personnel and Pensions, Division III. Other Retirement and Pension Provisions [Titles 35-End], Title 36. Social Security Benefts, § 36-101, et seq.
Massachusetts	Massachusetts General Laws Annotated, Part I. Administration of the Government (Ch. 1-182), Title XVII. Public Welfare (Ch. 115-123B), Chapter 118C. Coverage of Certain Employees Under the Federal Social Security Act, § 1, et seq.
Michigan	Michigan Compiled Laws Annotated, Chapter 38. Civil Service and Retirement, Social Security for Public Employees, 38.851, et seq.
Minnesota	Minnesota Statutes Annotated, Retirement (Ch. 352-356B), Chapter 355. Social Security Coverage, State and Local Government Employees, § 355.01, et seq.
Mississippi	West’s Annotated Mississippi Code, Title 25. Public Officers and Employees; Public Records, Chapter 11. Social Security and Public Employees’ Retirement and Disability Benefts, Article 1. Social Security Benefts, § 25-11-1, et seq.
Missouri	Vernon’s Annotated Missouri Statutes, Title VIII. Public Officers and Employees, Bonds and Records, Chapter 105. Public Officers and Employees--Miscellaneous Provisions Generally, § 105.005, et seq.
Montana	Montana Code Annotated, Title 19. Public Retirement Systems, Chapter 1. Social Security, Part 1. General Provisions, § 19-1-101, et seq.
Nebraska	Revised Statutes of Nebraska Annotated, Chapter 68. Public Assistance, Article 6. Social Security, §68-601, et seq.
Nevada	Nevada Revised Statutes Annotated, Title 23. Public Officers and Employees (Chapters 281-289), Chapter 287. Programs for Public Employees, Participation of Employees of State and Its Political Subdivisions in Federal Old-Age and Survivors’ Insurance, §287.050, et seq.
New Hampshire	Revised Statutes Annotated of the State of New Hampshire, Title VI. Public Officers and Employees (Ch. 91 to 103), Chapter 101. Old Age and Survivors’ Insurance, §101:1, et seq.
New Jersey	New Jersey Statutes, TITLE 43. Pensions and Retirement and Unemployment Compensation, Subtitle 9 Social Security, Chapter 22, Old Age and Survivors Insurance for Public Employees, § 43:22-1, et seq.

109

Statutory Citations for State Enabling Laws
As of April 2020

State or U.S. Territory	Citation
New Mexico	New Mexico Statutes Annotated, Chapter 10. Public Officers and Employees, Article 14. Social Security Coverage § 10-14-1, et seq.
New York	McKinney’s Consolidated Laws of New York Annotated, Retirement and Social Security Law, Chapter 51-A of the Consolidated Laws, Article 1. Short Title § 1. Short title of chapter, Article 3. Federal Old-Age and Survivors Insurance Coverage for Certain Public Employees § 130, et seq.
North Carolina	North Carolina General Statutes Annotated, Chapter 135. Retirement System for Teachers and State Employees; Social Security; State Health Plan for Teachers and State Employees, Article 2. Coverage of Governmental Employees Under Title II of the Social Security Act § 135-19, et seq.
North Dakota	North Dakota Century Code Annotated, Title 52. Social Security, Chapter 52-10. Public Employees Under Federal Social Security § 52-10-01, et seq.
Ohio	Baldwin’s Ohio Revised Code Annotated, Title I. State Government, Chapter 144. Old Age and Survivors Insurance--Municipal Employees 144.01, et seq.
Oklahoma	Oklahoma Statutes Annotated, Title 51. Officers, Chapter 4. Old Age and Survivors Insurance Under Federal Act, § 121, et seq.
Oregon	Oregon Revised Statutes Annotated, Title 22. Public Officers and Employees, Chapter 237. Public Employee Retirement Generally, Social Security Act Coverage, 237.410, et seq.
Pennsylvania	Purdon’s Pennsylvania Statutes and Consolidated Statutes, Title 65 P.S. Public Officers, Chapter 10. Public Officer and Employee Social Security Contribution Law § 201, et seq.
Puerto Rico	Laws of Puerto Rico Annotated, Title Three. Executive, Chapter 33. Retirement of Government Personnel Federal social security for Puerto Rico § 813, et seq.
Rhode Island	General Laws of Rhode Island Annotated, Title 36. Public Officers and Employees, Chapter 7. Federal Old-Age and Survivors’ Insurance, § 36-7-1, et seq.
South Carolina	Code of Laws of South Carolina 1976 Annotated, Title 9. Retirement Systems, Chapter 3. Coverage of Public Officers and Employees, Under Federal Social Security Act, Article 1. General Provisions § 9-3-10, et seq.
South Dakota	South Dakota Codifed Laws, Title 3. Public Officers and Employees, Chapter 3-11. Social Security Coverage 3-11-1, et seq.
Tennessee	West’s Tennessee Code Annotated, Title 8. Public Officers and Employees, Chapter 38. Social Security § 8-38-101, et seq.
Texas	Vernon’s Texas Statutes and Codes Annotated, Government Code, Title 6. Public Officers and Employees, Subtitle A. Provisions Generally Applicable to Public Officers and Employees, Chapter 606. Social Security, Subchapter A. General Provisions § 606.001, et seq.
Utah	Utah Code Annotated, Title 67. State Officers and Employees, Chapter 11. Federal Social Security § 67-11-1, et seq.
Vermont	Vermont Statutes Annotated, Title Three. Executive, Part 1. Generally, Chapter 19. Social Security for State and Municipal Employees § 571, et seq.

110

Statutory Citations for State Enabling Laws
As of April 2020

State or U.S. Territory	Citation
Virginia	Annotated Code of Virginia, Title 51.1. Pensions, Benefts, and Retirement, Chapter 7. Federal Social Security for State and Local Employees § 51.1-700, et seq.
Virgin Islands	Bill Number 10, Sixteenth Session, 1951.
Washington	Revised Code of Washington Annotated, Title 41. Public Employment, Civil Service, and Pensions, Chapter 41.48. Federal Social Security for Public Employees 41.48.010, et seq.
West Virginia	Annotated Code of West Virginia, Chapter 5. General Powers and Authority of the Governor, Secretary of State and Attorney General; Board of Public Works; Miscellaneous Agencies, Commissions, Offices, Programs, Etc., Article 7. Social Security Agency, § 5-7-1, et seq.
Wisconsin	Wisconsin Statutes Annotated, Public Employee Trust Fund (Ch. 40), Chapter 40. Public Employee Trust Fund, Subchapter III. Social Security for Public Employees 40.40, et seq.
Wyoming	Wyoming Statutes Annotated, Title 9. Administration of the Government, Chapter 3. Compensation and Benefts, Article 3. Social Security § 9-3-301, et seq.

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112

n Index

Absolute Coverage Group 39, 41

Accountable Plan 18, 34

Additional Medicare Tax 15, 21

Alternative lookback rule, retirement system 57

Appointed officials 27, 33, 34, 51

Back Pay 17, 73

Board members 27

Catch-up contributions

403(b) 19 457(b) 19, 20

Clothing provided by employer 18, 21

COBRA 49

Common-law employee 28, 29, 34, 35, 36, 37, 48, 61

Commuting rule 18

Conservation district 11

Continuation of Coverage 41

Continuing employment exception 4, 5, 49, 51, 59, 78, 90, 92, 93, 98, 99, 100

Correcting Wage Reports 67

Coverage group

absolute 39, 41, 78 retirement system 40, 41, 43, 44, 78, 80

Coverage under Section 218 38, 39, 42, 43, 44, 46, 60

Deceased employee wages 16, 17, 68

defined benefit plan 53, 54, 55, 56, 58, 78, 101, 102, 103, 104

Defined contribution plan 53, 54, 55, 56, 59, 78

Deposit rules 24, 27, 61, 95

Disclosure of tax information 72, 74, 75, 76

Divided retirement system 7, 11, 40, 41, 47

Earnings record 6, 17, 52, 61, 70, 78

Elected Officials 33, 43

Election workers/officials 2, 7, 23, 43, 45, 46, 50, 98

Elective positions 33, 43, 51

Electronic Federal Tax Payment System (EFTPS) 24

Emergency workers 27, 35, 42, 45, 47, 50, 98, 100

Employer Identification Number (EIN) 20, 34, 68, 73, 78

Employer pick-up contributions 19

Employment tax returns 6, 27, 28, 87

Federal government, authority 1, 9, 10

Federal income tax withholding 14, 16, 22, 24, 28

Federal State and Local Governments (FSL/ET) 38, 53, 71, 72

Fee-based public officials 43, 46, 79

FICA (Federal Insurance Contributions Act) 1, 6, 14, 24, 27, 79, 80

FICA replacement plan. See Public retirement system 2, 3, 4, 6, 7, 14, 28, 40, 44, 47, 51, 53, 58

Fire associations 11, 12

Firefighters 1, 2, 17, 27, 29, 34, 36, 46, 47

113

Firefighters social security coverage 2, 46, 47

Foreign workers 42, 45, 47, 73, 74

Form

941 6, 21, 24, 27, 34, 69, 73, 74 941X 22, 74 943 74 944 6, 21, 22, 27, 74 1099-MISC/1099-NEC 6, 17, 22, 23, 36, 68, 73, 74 2848 74, 75 8821 72, 74, 75, 77 I-9 67 SS-8 33, 37 SSA-7004 66 W-2 6, 7, 16, 17, 20, 21, 22, 23, 31, 37, 46, 47, 66, 67, 68, 69, 70, 73, 80, 96 W-3 6, 20, 21, 22, 23, 67, 68, 69, 73, 96 W-4 16, 20, 24, 25, 73 W-9 23, 36, 73

Former participants retirement plan 58

Fringe benefits 17, 18, 21, 73, 74

Full retirement age 61, 62

FUTA (unemployment tax) 12, 14, 16, 25, 28, 35, 79

Government Pension Offset (GPO) 2, 62, 63, 64, 65, 79

Health benefits 18, 65

Income tax withholding 13, 14, 16, 18, 19, 20, 21, 22, 23, 24, 26, 28, 29, 33, 35, 36, 37, 73

Independent contractor 6, 28, 29, 30, 31, 32, 33, 36, 37, 69, 74

defined 28, 29 tax responsibilities 36

Indian Tribal Governments i, 7, 9, 12, 13, 28, 49, 71, 72, 73

information reporting 23, 24, 26, 28, 36, 60, 72

Information reporting penalties 25, 26

requirements 26

Information return reporting 23, 37, 67, 72, 73

Inmates 27, 42, 44, 45

Instrumentality defined 3, 7, 10, 11, 12, 13, 53, 78, 79, 81

Interest on tax due 25, 26

Internal Revenue Service i, 2, 6, 66, 71, 73

Interstate instrumentalities 1, 9, 10, 11, 40, 47, 79, 81

Leased workers 35, 48

Local government i, 1, 2, 3, 4, 5, 9, 10, 14, 38, 39, 41, 42, 44, 49, 51, 53, 58, 59, 70, 72, 74

Mandatory Medicare coverage 3, 4, 22, 49, 50, 51, 79

continuing employment exception 4, 5, 49, 50, 51, 52, 59, 78, 90, 92, 93, 98, 99, 100

Mandatory social security coverage 2, 3, 4, 5, 6, 7, 10, 23, 38, 42, 43, 44, 45, 46, 47, 48, 50, 51, 53, 55, 56, 57, 58, 59, 65, 78, 79, 80

Mandatory social security coverage exclusions 44, 45

Meals furnished by employer 18

Medicaid 50, 65, 66

Medicare benefits 61, 80, 101

coverage rules 2, 4, 5, 7, 8, 27, 28, 38, 39, 40, 41, 47, 49, 50, 51, 58, 74, 76 services not covered 1, 2, 3, 4, 7, 8, 11, 13, 14, 19, 20, 27, 28, 37 voluntary 50, 52, 61, 65

Medicare Qualified Government Employment (MQGE) 22, 49, 79

114

Military differential pay 16

Modification Section 218 Agreement 3, 6, 7, 38, 39, 41, 43, 45, 46, 47, 50, 52, 60, 70, 76, 78, 79

Multiple positions employee 57, 59

National Conference of State Social

Security Administrators (NCSSSA i, 3, 7, 50, 77, 79

Noncash payments 17, 21, 38

Nonpayroll withholding 22, 24

Nonqualified plan 19, 20, 21, 53

Optional exclusions

Section 218 coverage 3, 5, 7, 38, 39, 42, 43, 44, 50, 77, 80, 94, 95

Parallel Social Security Office (PSSO) 76

Part-time employees 30, 31, 32, 34, 35, 43, 44, 54, 56, 57, 59, 65, 99, 100, 103

Penalties 17, 25, 26, 36, 37, 66, 68, 88, 95, 96

information reporting 26, 66, 68 trust fund recovery penalty 26

Pick-up contributions 19

Police officers social security coverage 1, 2, 17, 27, 41, 46, 47

Prisoners. See Inmates 27, 42, 44, 45, 50, 92

Public Officials 33, 34, 43, 45, 46, 48, 79

Public retirement system i, 2, 3, 4, 5, 6, 7, 11, 14, 22, 27, 28, 38, 40, 42, 43, 44, 46, 47, 49, 50, 51, 53, 54, 56, 58, 59, 62, 78, 79, 80 alternative lookback rule 57, 78 definition 53 qualified participant 3, 11, 27, 43, 46, 50, 53, 54, 55, 56, 57, 58, 59, 78, 80, 104

Qualified participant retirement plan 11, 31, 51, 53, 54, 55, 56, 57, 58, 59, 78, 80

Qualified retirement plan income tax withholding 11, 19

Referendum (Social Security coverage) divided system 7, 11, 40, 41, 46, 47, 76, 80

majority vote 11, 40, 41, 47

Regional Commissioner SSA 60

Rehired annuitants 58, 59

Reimbursements business expenses 18, 29, 30, 34, 35, 37, 47

Required exclusions 42, 50, 80

Section 218 coverage 42, 80

Retirement plans 19, 22, 65, 71, 72, 74

Retirement system coverage group 39, 40, 41, 43, 44, 47, 78, 80

Retirement system.See Public retirement system 38, 39, 40, 42, 80

Seasonal employees 31, 32, 43, 54, 56, 57, 59, 103, 104

Section 115 Internal Revenue Code 9, 13, 79

Section 218 Agreement i, 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 14, 19, 23, 27, 28, 33, 35, 36, 37, 38, 39, 40, 41, 42, 43, 44, 45, 46, 47, 48, 49, 50, 51, 52, 53, 56, 57, 58, 59, 60, 65, 70, 72, 74, 75, 76, 77, 78, 79, 80, 81, 92, 96, 101, 103 modification(s) 3, 6, 7, 38, 39, 41, 42, 43, 45, 46, 47, 52, 60, 70, 76, 78, 79 required exclusions 41, 42, 50, 80

Section 403(b) plan 19, 22, 31, 54, 73

Section 457 plan 19, 20, 22, 53, 54, 104

Section 530 (Revenue Act of 1978) i, 36, 37, 73, 83, 86, 87, 88

Sick pay 16, 54

Social security

benefits 6, 17, 20, 61, 62, 63, 66, 67, 70, 79, 81

115

coverage 1, 2, 3, 6, 7, 13, 14, 17, 19, 27, 28, 38, 41, 42, 43, 44, 45, 47, 48, 50, 53, 55, 56, 57, 58, 60, 63, 65, 72, 74, 75, 76, 77, 79, 92, 94, 95 earnings record 6, 7, 17, 52, 61, 69, 70, 78, 81 exclusions 3, 5, 27, 34, 35, 38, 42, 43, 44, 45, 46, 47, 50, 51, 69, 77, 79, 80 key dates 2 optional exclusions 3, 5, 38, 42, 44, 50, 80

Social Security Administration i, 6, 14, 17, 20, 45, 60, 65, 66, 69, 73, 80, 94, 95

Social Security and Medicare wages defined 14

Social Security coverage exclusions 42, 43, 44, 45, 46, 50

Social Security number 7, 61, 66, 67, 68, 69, 81

Social Security number verification service 66, 67, 69

Social Security Statement 66, 67, 70, 80

Social Security wage base 14, 21, 22, 35, 54, 61, 68, 69, 81, 94

Soil conservation district 11

State Social Security Administrator 2, 3, 5, 6, 7, 8, 10, 28, 33, 38, 41, 46, 48, 50, 51, 52, 56, 60, 70, 72, 74, 75, 76, 77, 79, 81

Tax sheltered annuity 19, 73

Temporary employees 56, 59, 103

Temporary workers 32, 35, 59

Third-party sick pay 16

Trust fund recovery penalty 26

Vacation pay 16, 29

Vesting requirements 55, 56, 57, 59

Voluntary Medicare 50, 52

Volunteer firefighters 34, 35

Wages

deceased employee 16, 17, 68 noncash 17, 21, 38

Water conservation district 10, 11

Wholly-owned instrumentality 10, 11, 12, 13, 78, 81, 90, 92, 101

Withholding

qualified plans 19 Withholding income tax 13, 14, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26, 28, 29, 33, 35, 36, 37, 73, 86, 87, 92

Worker classification 6, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37, 73

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Publication 963 (Rev. 5-2025) Catalog Number 21843B Department of the Treasury Internal Revenue Service www.irs.gov

Exceptions & meaning →