1019.1 Who is responsible for the payment of contributions for wages paid before January 1, 1987?
The State is liable for the payment of contributions on all wages paid before January 1, 1987, for services covered under the State agreement. The amount due is equal to the sum of the employer and employee taxes imposed under the Federal Insurance Contributions Act (FICA) on private employers. Wages for covered services are subject to the wage limitations in §1301.
1019.2 How are contributions paid if an employee worked for more than one political entity?
If an employee worked for more than one political entity, contributions are due on all wages paid by each entity up to the maximum (see §1407).
1019.3 Is there a statue of limitations for State liability of contributions for wages?
A statute of limitations determines a time limit beyond which: (1) a State is not liable for amounts due on wages paid to employees whose services are covered under its agreement; and (2) SSA is not liable for refunding or crediting overpayments made by a State under its agreement.
1019.4 What types of reviews may be requested of the Commissioner of Social Security?
Any State may request the Commissioner of Social Security to review:
An assessment of an amount due from the State under its agreement;
A disallowance of the State's claim for credit or refund of an overpayment of its contributions; or
An allowance to the State of a credit or refund of an overpayment of its contributions.
1019.5 When are requests for review by the Commissioner of Social Security filed?
The State must file its request for review within 90 days after the date of the notice to the State of the assessment, disallowance or allowance. The time for filing the request for review may be extended for good cause. The request for extension of time must be made before expiration of the 90-day period.
1019.6 What information is included with the request for review?
The request must show the specific issue on which review is being asked. Any additional evidence or information that the State wishes to submit is also included. SSA may allow a State an additional 90 days from the filing of the request for review to furnish evidence or information. If the State needs more time, an extension may be granted for good cause.
1019.7 What happens after the review?
SSA reviews whether or not the State has paid the amount assessed or has taken the credit allowed. If the State is not satisfied with the decision, it may file civil suit in the appropriate Federal district court for a redetermination. The appeal must be filed within two years of notification of SSA's decision. SSA may extend the time for filing a civil action for good cause. The State must request an extension of time before expiration of the two-year period.
Note: For wages paid after December 31, 1986, States are no longer liable for their political subdivisions' Social Security deposits. States and political subdivisions are required to follow FICA procedures, and the IRS is responsible for the administration and collection of the FICA taxes.
Last Revised: Jul. 8, 2004