If you`re a public employer or employee in Illinois, you may have come across the term “section 218 agreement.” This agreement is a vital aspect of Social Security coverage for state and local government employees in Illinois, and it`s essential to understand what it entails.
The section 218 agreement is a legal document that governs the relationship between the federal government and individual states or their political subdivisions. It allows for the extension of Social Security coverage to employees of the state or local government who are not covered by a retirement plan.
The agreement ensures that public employees in Illinois are entitled to Social Security benefits, such as retirement, disability, and survivor benefits. However, it`s important to note that the agreement doesn`t cover all employees. Only those who are not covered by a retirement plan are eligible for Social Security coverage.
The section 218 agreement is significant for Illinois public employers and employees because it establishes the conditions under which Social Security taxes are paid. Employers are responsible for withholding Social Security taxes from their employees` salaries, while employees are also expected to contribute a portion of their income.
Public employees in Illinois who are eligible for Social Security coverage should ensure that their employer has signed the section 218 agreement. In the case of employers who have not signed the agreement, employees may be required to pay the full amount of Social Security taxes.
Overall, the section 218 agreement is an essential part of Social Security coverage for public employees in Illinois. If you`re an Illinois public employer or employee, it`s crucial to understand the agreement and its implications. You should consult a legal professional or the Social Security Administration for more information on how the agreement affects you or your employer.
