The State Social Security Administrator (SSSA) can:

• aid local governments in securing Section 218 coverage for their employees;
• assist in ensuring local governments are correctly withholding and reporting Social Security and Medicare taxes;
• serve as a liaison with the federal Social Security Administration (SSA) and the Internal Revenue Service (IRS) to address state and local government coverage-related issues and questions; and
• provide education and outreach to state and local government employers and employees.

When the Social Security Act (the Act) was enacted in 1935, Social Security coverage was limited to private sector employees. States, their political subdivisions, and interstate instrumentalities were not originally included in this legislation. However, with the Social Security Amendments of 1950, Congress created Section 218 of the Act. Effective January 1, 1951, Social Security coverage became available to state and local government employees through a unique Federal-State Agreement authorized by Section 218.

These agreements, referred to as Section 218 Agreements, are written voluntary agreements between a state and the Social Security Administration (SSA) to provide Social Security and Medicare Hospital Insurance (HI) or Medicare coverage only for employees of state and local governments. Employees covered under a Section 218 Agreement have the same coverage and benefit rights as employees in the private sector. All states have a Section 218 Agreement, but the extent of coverage varies.

Reasons to contact the SSSA include:

• When an entity's name changes;
• When (or before) a new entity is created;
• When an entity is merging with, or separating from another;
• When an entity is legally dissolved or is non-operational for three or more years;
• When an auditor requests to see an entity's Section 218 Agreement – the SSSA maintains a record of all existing Montana agreements;
• When organizing a joint educational outreach session – the SSSA assists in coordinating with the SSA and IRS;
• To receive assistance in determining whether an entity is a political subdivision;
• To receive assistance in determining whether mandatory Social Security and Medicare coverage is applicable or if a Section 218 Agreement is needed;
• To receive assistance in determining what coverage groups (by retirement system) are covered by a Section 218 Agreement – some entities may have more than one retirement system (example: most counties have some employees under PERS and some employees under SRS); or
• To receive assistance in obtaining Section 218 coverage when an entity, or board of an entity, wishes to start paying Social Security for their employees.

An individual should contact the SSSA only for questions regarding the Section 218 status of their state or local government employer or if they have questions about whether their employer should or should not be withholding Social Security taxes. Most other Social Security questions should be directed to the federal SSA.

Social Security

Use the Social Security Office Locator to find the contact information for your local Social Security Office or call (800) 772-1213.

You may also create a free and secure my Social Security account by visiting ssa.gov/myaccount. The account allows you to get personalized retirement benefit estimates, get proof that you do not receive benefits, check the status of an application, and get your annual Social Security Statement. The site also provides a listing of Social Security online services.

Medicare

Visit Medicare.gov to find contact information for Montana Medicare resources or call (800) 633-4227.

Firefighters

Firefighters in Montana are excluded from participation in Social Security. They should not be paying Social Security taxes. If any firefighters are participating in Social Security, please contact the SSSA to determine the next steps to correct the issue.

Police Officers

Police Officers in Montana have been permitted to participate in Social Security since 1975 if the entity has a Section 218 Agreement that includes police officer positions. Some entities do, but many do not.

• If an entity does not have such an agreement and its police officers are paying Social Security taxes, they are doing so erroneously. Please contact the SSSA to make sure this situation applies and to determine the next steps to correct the issue.
• If an entity's police officers are not paying Social Security because they do not have a Section 218 Agreement that includes them, and the entity wants to obtain such an agreement, please contact the SSSA to begin the process.

Election workers who earn less than the coverage threshold in a given year do not pay Social Security taxes on those earnings. However, once they reach the threshold, all earnings, back to the first dollar, are subject to Social Security taxes. The coverage threshold is updated each year based on the national average wage index. For 2022, the Election Worker Threshold is $2,000. For 2023, the threshold is $2,200.