Social Security - Who's Covered? Flashcards
How many States have enrolled their workers in SS through a Section 218 agreement?
Is California?
Are all municipalities in participating states also participating?
What do Section 218 agreements define?
40, leaving 10 outside the system, including California.
Within States that participate, many local municipalities typically do not.
Section 218 agreements are between state governments and SSA. They define which classes of state employees participate, and whether they participate in SS or Medicare, or both.
Government employees must participate in SS if not covered by a State government pension program.
Nearly everyone who works in the US, must participate in SS and Medicare (i.e. pay FICA). What groups are allowed to not participate?
State or local government workers who participate in their own pension system.
Railroad workers
Ministers and retain church employees
Members of certain religious orders
Limited partners in a partnership
As of July 2, 1991 SS and Medicare are mandatory for all state and local employees who meet the following criteria:
Are not members of a public pension, and
Are not covered by a Section 218 agreement.
What is the annual compensation threshold that triggers FICA for household employees?
$1,900 (2014)
Approximately what percentage of US workers participate in SS?
97%
T or F - Many state and local workers can pay into and collect benefits from both a state or local pension and Social Security
True. Many or all CALPERS partipants are an example.
T or F - The fact that self-employed persons pay both halves of FICA means that earned twice as many SS credits per dollar of net self employment income as an employee.
False - $1,200 of wages and $1,200 of net self-employment income both earn one SS credit, despite the difference in the amount of FICA paid.
An employee works for a brief period, earning a single pay check for $4,800. They don’t work for the rest of the year. How many SS credits did they earn for that year?
4
Which the following are covered by Social Security?
Military personnel
Federal employees
State and local employees
Employees of non-profits
Active service military members are covered. Reservists are also covered, but only while on weekend or once per year training/service.
Federal employees are covered
State and local employees may or not be covered, depending on whether there is a Section 218 agreement in place. This varies from state to state, and within states according to locality.
Non profit employees are covered.
