[Federal Register Volume 63, Number 247 (Thursday, December 24, 1998)]
[Proposed Rules]
[Pages 71237-71238]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-34137]


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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: Proposed rules.

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SUMMARY: We propose to amend our current rules dealing with the special 
identification numbers we issue to States that submit modifications to 
their voluntary social security coverage group agreements. Under the 
proposed revision, we would 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.

DATES: To be sure that your comments are considered, we must receive 
them no later than February 22, 1999.

ADDRESSES: Comments should be submitted in writing to the Commissioner 
of Social Security, P.O. Box 1585, Baltimore, MD 21235, sent by telefax 
to (410) 966-2830, sent by e-mail to [email protected], or delivered 
to the Social Security Administration, 2109 West Low Rise Building, 
6401 Security Boulevard, Baltimore, MD 21235, between 8:00 a.m. and 
4:30 p.m. on regular business days. Comments may be inspected during 
these hours by making arrangements with the contact person shown below. 
The electronic file of this document is available on the Internet at 
www.access.gpo.gov/nara at 6:00 a.m. on the date of publication in the 
Federal Register.

FOR FURTHER INFORMATION CONTACT: Robert Augustine, Legal Assistant, 
Office of Process and Innovation Management, 6401 Security Boulevard, 
Baltimore, MD 21235, (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 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.

Explanation of Proposed Changes

    We propose to modify 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 will be free to assign their own 
identification numbers to employers covered under modifications that do 
not cover pre-1987 earnings, so that these proposed rules will have no 
adverse impact on State recordkeeping operations. This proposal will 
permit SSA to divert scarce resources to other priority workloads.

[[Page 71238]]

Regulatory Procedures

Executive Order 12866

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

Regulatory Flexibility Act

    We certify that these proposed 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 proposed 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: December 14, 1998.
Kenneth S. Apfel,
Commissioner of Social Security.

    For the reasons set forth in the preamble, we propose to amend 
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. 98-34137 Filed 12-23-98; 8:45 am]
BILLING CODE 4190-29-P