[Federal Register Volume 64, Number 118 (Monday, June 21, 1999)]
[Rules and Regulations]
[Pages 33015-33016]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15585]


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SOCIAL SECURITY ADMINISTRATION

20 CFR Parts 404 and 422

[Regulations Nos. 4 and 22]
RIN 0960-AE84


Federal Old-Age, Survivors, and Disability Insurance; Employer 
Identification Numbers for State and Local Government Employment

AGENCY: Social Security Administration (SSA).

ACTION: Final rules.

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SUMMARY: We are amending our rules dealing with the special 
identification numbers we issue to States that submit modifications to 
their voluntary social security coverage group agreements. Under this 
revision, we will issue special identification numbers only in cases 
where a modification extends coverage to periods prior to 1987. This 
revision will permit SSA to divert scarce SSA resources to other 
priority workloads without adversely affecting State recordkeeping 
operations.

EFFECTIVE DATE: This regulation is effective July 21, 1999.

FOR FURTHER INFORMATION CONTACT: Robert Augustine, Social Insurance 
Specialist, Office of Process and Innovation Management, 6401 Security 
Boulevard, Baltimore, MD 21235-6401, (410)966-5121 or TTY (410) 966-
5609 for information about this rule. For information on eligibility or 
claiming benefits, call our national toll-free number, 1-800-772-1213 
or TTY 1-800-325-0778.

SUPPLEMENTARY INFORMATION: Section 205(c)(2)(A) of the Social Security 
Act (the Act) requires SSA to maintain a record of the wages and self-
employment income of each individual. The record is identified by the 
individual's social security number. Wages posted to an individual's 
record are based on wage reports submitted to SSA and the Internal 
Revenue Service (IRS) by employers. IRS regulations at 26 CFR 
31.6011(a)-l require an employer to file returns required under the 
Federal Insurance Contributions Act (FICA) with IRS each year and IRS 
regulations at 26 CFR 31.6051-2 and 31.6091-1(d) require an employer to 
file wage reports with SSA each year. These requirements are also 
explained on wage reporting forms and in related instructions issued by 
SSA and IRS. To help account for these returns and reports, IRS assigns 
an employer identification number (EIN) to most employers. 
Additionally, SSA assigns a special identification number to each 
political subdivision of a State which is

[[Page 33016]]

included in a modification to the State's coverage agreement under 
section 218 of the Act. These special identification numbers must 
currently be issued to any State that requests a modification of its 
coverage agreement, and to interstate instrumentalities if pre-1987 
coverage is obtained. However, for SSA program purposes, such numbers 
are necessary only if the modification covers wages for years prior to 
1987. In cases where the modification does not cover pre-1987 wages, 
the number is assigned solely for State bookkeeping purposes.

Regulatory Provisions

    We are modifying paragraph (a) of Sec. 404.1220 and paragraph (b) 
of Sec. 422.112 of our regulations to indicate that we will issue a 
special identification number to each political subdivision of a State 
included in a modification to the State's voluntary coverage agreement 
under section 218 of the Act only if the modification extends coverage 
to periods prior to 1987. States are free to assign their own 
identification numbers to employers covered under modifications that do 
not cover pre-1987 earnings, so that these final rules will have no 
adverse impact on State recordkeeping operations. This revision will 
permit SSA to divert scarce resources to other priority workloads.
    On December 24, 1998, we published proposed rules in the Federal 
Register at 63 FR 71237 and provided a 60-day period for interested 
parties to comment. We received no comments. We are, therefore, 
publishing these rules unchanged.

Regulatory Procedures

Executive Order 12866

    We have consulted with the Office of Management and Budget (OMB) 
and have determined that these final rules do not meet the criteria for 
a significant regulatory action under Executive Order (E.O.) 12866. 
Thus, they are not subject to OMB review.

Regulatory Flexibility Act

    We certify that these final regulations will not have a significant 
economic impact on a substantial number of small entities. Thus, a 
regulatory flexibility analysis as provided in the Regulatory 
Flexibility Act, as amended, is not required.

Paperwork Reduction Act

    These final regulations will impose no additional reporting or 
recordkeeping requirements requiring OMB clearance.

(Catalog of Federal Domestic Assistance Program Nos. 96.001 Social 
Security Disability Insurance; 96.002 Social Security Retirement 
Insurance; 96.004 Social Security Survivors Insurance.)

List of Subjects

20 CFR Part 404

    Administrative practice and procedure, Blind, Disability benefits, 
Old-Age, Survivors, and Disability Insurance, Reporting and 
recordkeeping requirements, Social Security.

20 CFR Part 422

    Administrative practice and procedure, Freedom of information, 
Organization and functions (Government agencies), Social Security.

    Dated: June 10, 1999.
Kenneth S. Apfel,
Commissioner of Social Security.

    For the reasons set forth in the preamble, we are amending subpart 
M of part 404 and subpart B of part 422 of Chapter III of the Code of 
Federal Regulations as follows:

PART 404--FEDERAL OLD-AGE, SURVIVORS AND DISABILITY INSURANCE 
(1950--)

Subpart M--[Amended]

    1. The authority citation for subpart M of part 404 continues to 
read as follows:

    Authority: Secs. 205, 210, 218 and 702(a)(5) of the Social 
Security Act (42 U.S.C. 405, 410, 418 and 902(a)(5)); sec. 12110, 
Pub. L. 99-272, 100 Stat. 287 (42 U.S.C. 418 note); sec. 9002, Pub. 
L. 99-509, 100 Stat. 1970.

    2. Section 404.1220 is amended by revising paragraph (a) to read as 
follows:


Sec. 404.1220  Identification numbers.

    (a) State and local governments. When a State submits a 
modification to its agreement under section 218 of the Act, which 
extends coverage to periods prior to 1987, SSA will assign a special 
identification number to each political subdivision included in that 
modification. SSA will send the State a Form SSA-214-CD, ``Notice of 
Identifying Number,'' to inform the State of the special identification 
number(s). The special number will be used for reporting the pre-1987 
wages to SSA. The special number will also be assigned to an interstate 
instrumentality if pre-1987 coverage is obtained and SSA will send a 
Form SSA-214-CD to the interstate instrumentality to notify it of the 
number assigned.
* * * * *

PART 422--ORGANIZATION AND PROCEDURES

Subpart B--[Amended]

    3. The authority citation for subpart B of part 422 continues to 
read as follows:

    Authority: Secs. 205, 232, 702(a)(5), 1131, and 1143 of the 
Social Security Act (42 U.S.C. 405, 432, 902(a)(5), 1320b-1, and 
1320b-13).

    4. Section 422.112 is amended by revising paragraph (b) to read as 
follows:


Sec. 422.112  Employer identification numbers.

* * * * *
    (b) State and local governments. When a State submits a 
modification to its agreement under section 218 of the Act, which 
extends coverage to periods prior to 1987, SSA will assign a special 
identification number to each political subdivision included in that 
modification. SSA will send the State a Form SSA-214-CD, ``Notice of 
Identifying Number,'' to inform the State of the special identification 
number(s). The special number will be used for reporting the pre-1987 
wages to SSA. The special number will also be assigned to an interstate 
instrumentality if pre-1987 coverage is obtained and SSA will send a 
Form SSA-214-CD to the interstate instrumentality to notify it of the 
number assigned.

[FR Doc. 99-15585 Filed 6-18-99; 8:45 am]
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