Internal Revenue Service to host a free “Online Presentation” for government employers rehiring former employees
Source: The Internal Revenue Service
The Internal Revenue Service [IRS] advises that the payroll tax treatment of a former government employee returning to work for the same entity may be different than it was prior to their retirement or separation. The "Online Presentation" [This presentation ] will help government employers understand how to comply with "the complicated and often misunderstood tax implications of hiring a former employee."
The presentation will address
1. Section 218 Agreements [see below];
2. The roles the IRS, Social Security Administration and the National Conference of State Social Security Administrators have in determining the employment tax classification of a rehired annuitant;
3. Guidelines and examples on how to approach different rehired annuitant scenarios; and
4. How to seek assistance;
The presentation will be offered August 15, 2013 at 2 p.m. Eastern Time
Click here to register for this event. IRS suggests registering “as soon as possible because space is limited.”
Please send any questions you may have concerning this presentation via e-mail to the Internal Revenue Service at email@example.com
The following has been adopted from an IRS Section 218 Agreements and Social Security Coverage posting on the Internet
The IRS advises that a state and local government employees may be covered for social security and Medicare either by mandatory coverage, or under a Section 218 Agreement between the state and the Social Security Administration. Under some circumstances, an employee may be excluded from social security or Medicare, or both.
Sometimes, notes the IRS, employers fail to properly apply the terms of coverage to their employees. This leads to incorrect reporting, including non-reporting or erroneous coverage. Once incorrect reporting occurs it will often continue until the Social Security Administration or the IRS becomes involved; typically, during claims processing or examinations and audits.
Social security coverage can vary widely within a state or even a local area. IRS cautions public employers not to make an assumption about Section 218 coverage for an entity and whether it is in compliance with all applicable laws merely because of the status of a similar entity, either in the same or a different state.
For Section 218 coverage questions, public employers should contact its state Social Security Administrator (see www.ncsssa.org). For mandatory coverage questions, public employers should contact an IRS FSLG Specialist (see www.irs.gov/govts for a directory).
Another resource: The SSA State and Local Government Employers website at www.ssa.gov/slge.