[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] ======================================================================= ----------------------------------------------------------------------- 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. ----------------------------------------------------------------------- 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] BILLING CODE 4190-29-P