contributions be so computed with respect to wages paid before January 1, 1957, in the case of an agreement or modification which is mailed or delivered by other means to the Secretary before January 1, 1962, or with respect to wages paid before the first day of the year in which the agreement or modification is mailed or delivered by other means to the Secretary if on or after January 1, 1962.

[26 F.R. 12685, Dec. 29, 1961]

§ 404.1223

Manner and time of payment of contributions by State.

Federal Reserve Banks are authorized to receive the contributions required to be paid to the Secretary of the Treasury by an agreement made pursuant to the Social Security Act, as amended. The contributions shall be paid in money to the Federal Reserve Bank, or any branch thereof, serving the district in which the State is located, without notice, at the time fixed for filing of its contribution returns. (For provisions relating to the filing of contribution returns, see § 404.1255.)

[20 F.R. 3330, May 14, 1955]

§ 404.1224 When fractional part of a cent may be disregarded.

In payment of contributions to a Federal Reserve bank, a State may disregard a fractional part of a cent unless it amounts to one-half cent or more, in which case it shall be increased to one cent. Fractional parts of a cent shall not be disregarded in the computation of contributions.

[20 F.R. 3330, May 14, 1955]

§ 404.1225 Rate of interest.

If the contribution is not paid to the Federal Reserve bank, or branch thereof, when due and is not adjusted under § 404.1261, interest accrues at the rate of 6 percent per annum.

[20 F.R. 3330, May 14, 1955]

§ 404.1226 Addition of interest to contributions for delinquent contribution returns.

If a State fails to make and file any of the contribution returns required by the regulations in this subpart within the prescribed time, interest accrues at the rate of 6 percent per annum. [20 F.R. 3330, May 14, 1955]

§ 404.1227 Failure to make payments.

If any State which has entered into an agreement with the Secretary of

Health, Education, and Welfare pursuant to section 218 of the Social Security Act, as amended, does not pay the contributions at the time or times such contributions are due, the Secretary of Health, Education, and Welfare may deduct the amounts of such unpaid contributions plus interest from any amounts certified by him to the Secretary of the Treasury for payments to such State under title I, title IV, title V, title VI or title X of the Social Security Act, as amended. The Secretary

of Health, Education, and Welfare will notify the Secretary of the Treasury of the amounts so deducted and request him to credit such amounts to the Trust Funds. Amounts so deducted shall be deemed to have been paid to the State under such other provision of the Social Security Act, as amended. (See § 404.1223 relating to time of payment; see § 404.1225 relating to rate of interest.)

[24 F.R. 6615, Aug. 14, 1959]

$ 404.1230 Statements for employees.

Every State shall furnish or cause to be furnished to each individual performing services in employment as an employee in a coverage group included in an agreement, a written statement or statements, in a form suitable for retention by the employee, showing with respect to wages paid to the employee for such services on or after the effective date of the agreement: (a) The name, business address, and identification number of the State or political subdivision, as the case may be, in the employ of which such service was performed; (b) the name, address, and account number of the employee; (c) the period covered by the statement; (d) the total amount of wages subject to contributions under section 218 of the Social Security Act, as amended, paid during such period; and (e) if the State collects or causes to be collected contributions from individuals performing services in employment as employees in coverage groups included in the agreement, the amount of the employees' contributions with respect to such wages not in excess of the amount of the tax which would be imposed by the Federal Insurance Contributions Act if the services performed by such employees constituted employment as defined in such Act, and, with respect to calendar years after 1965, the proportion of the total amount of such contributions which is

for financing the cost of hospital insurance benefits under part A of title XVIII of the Act. (See 8404.1221(b) for rates for calendar years after 1965.) If an adjustment of employees' contributions is made in accordance with § 404.1266, the amount set forth in paragraph (e) of this section shall be the adjusted amount of such contribution. If the State collects or causes to be collected employee's contributions from any individual performing services in employment as an employee in a coverage group included in an agreement, a statement (Internal Revenue Form W-2) furnished by a State or any political subdivision thereof in accordance with the provisions of section 1633 of the Internal Revenue Code of 1939 or section 6051 of the Internal Revenue Code of 1954 to such employee shall constitute the statement required for purposes of this section, if there is included in such statement all of the information required by this section. The statement shall be furnished to the employee not later than January 31 of the year following the calendar year covered by the statement, except that, if the employee leaves the employ of the State or of the political subdivision, so that he no longer performs services in employment as an employee in a coverage group included in an agreement, the final statement shall be furnished on the day on which the last payment of wages is made to the employee. (See § 404.1250 (b) relating

to the performance of services in more than one coverage group.)

[31 F.R. 8367, June 15, 1966]

§ 404.1240 Identification numbers.

(a) Identification number for State and political subdivisions. Every State requesting the Secretary of Health, Education, and Welfare to enter into an agreement pursuant to section 218 of the act shall furnish a list of the political subdivisions included or to be included in the agreement. Such list shall indicate the title of the official responsible for preparing the report on Form OAR-S3 for the State and the title of each official responsible for filing with the State the report on Form OAR-S3 for each such political subdivision and the business address of each such official. Every State shall file such list with the regional office of the Department of Health, Education, and Welfare for the region in which the State is located at the time of requesting the Secretary of Health, Education, and

Welfare to enter into an agreement pursuant to section 218 of the act. If any political subdivision is included in the agreement (with respect to any of its employees) as a result of a referendum held in accordance with section 218(d) (3) of the act, the State shall include such political subdivision in such list, or shall furnish a supplemental list including such political subdivision at the time the political subdivision is first included under the agreement. Only one identification number will be assigned to the State and only one identification number will be assigned to each political subdivision included in the list. If an identification number has been assigned to any State or to any of its political subdivisions for purposes of reporting covered transportation services, the State shall nevertheless obtain a separate identification number and shall obtain a separate identification number for each political subdivision included in the list for purposes of reporting services covered under an agreement.

(b) Coverage group number for coverage groups. If a State or any political subdivision thereof shall designate the coverage groups of its employees to be included in the agreement, the list referred to in paragraph (a) of this section shall identify each coverage group under the listing of the State, with regard to individuals who perform services as employees of the State in each such coverage group, or of the political subdivision, with regard to the individuals who perform services as employees in each such coverage group of such political subdivision. Such list shall also indicate the title of the official responsible for preparing the report on Form OARS3 for each such coverage group and the business address of each such official. A coverage group number will be assigned to each coverage group of the State and each coverage group of such political subdivisions upon the basis of information furnished on the list. The term "coverage group," as used in this section, means a "coverage group," as defined in section 218 (b) (5) of the act, and shall not include a "coverage group" as defined in section 218 (d) (4) of the act.

(c) Unit numbers for payroll record units. If a State or any political subdivision thereof maintains more than one payroll record unit with respect to the employees in any one or more coverage groups included under the agree

ment, the lists referred to in paragraphs (a) and (b) of this section shall also indicate the agencies, departments, or other branches of the State and of such political subdivisions, the records for which are maintained in each such payroll unit, the title of the official in charge of such payroll unit and the business address of such official. A unit number will be assigned to each separate payroll record unit within a State or within any political subdivision thereof.

(d) Unit numbers where contribution amounts are limited. Where an agreement or modification of an agreement provides for the computation of contributions in the manner prescribed in § 404.1222a with respect to some but not all of the employees of any political subdivision of the State, special unit numbers will be assigned to the political subdivision, as required, for the purpose of identifying the employees of the political subdivision with respect to whose remuneration contributions are so computed. No special unit number will be assigned to a political subdivision in which the contributions based on the remuneration of all of the employees are computed in the manner prescribed in § 404.1222a.

(e) Use. The identification number (including coverage group numbers assigned to coverage groups and unit numbers assigned) shall be shown on the State's records, reports, returns, and claims to the extent required by §§ 404.1254, 404.1255 (a), 404.1256, and 404.1263 and by the instructions relating to Forms OAR-S1, OAR-S2, OAR-S3, OAR-S4, and OAR-S11 to be used by States for reporting wages, adjustments, and contributions.

[20 F.R. 3330, May 14, 1955 as amended at 24 F.R. 6615, Aug. 14, 1959; 26 F.R. 12685, Dec. 29, 1961]

§ 404.1241 Employees' account bers.

num

(a) Assignment. Every individual who performs services in employment as an employee in a coverage group included in an agreement, and who previously has neither secured an account number nor made application therefor, shall make an application on Form SS-5 with any district office of the Social Security Administration on or before the seventh day after the date on which he first performs services in employment for wages as an employee in a coverage group included in an agreement, except

that the application shall be made on or before the date the employee leaves the employ of the State or its political subdivision if such date of leaving precedes such seventh day. Copies of Form SS-5 may be obtained from any district office of the Social Security Administration or from any district director of internal revenue. An account number will be assigned to the employee on the basis of information reported on the application required under this section.

(b) Change. An employee may have his account number changed at any time by applying to a district office of the Social Security Administration and showing good reason for a change. With that exception, only one account number will be assigned to an employee. Any employee whose name is changed by marriage or otherwise, or who has stated incorrect information on Form SS-5 should report such change or correction to a district office of the Social Security Administration. Copies of the Form OAAN-7003 for making such reports may be obtained from any district office of the Social Security Administration.

[20 F.R. 3331, May 14, 1955]

§ 404.1242 Duties of employee with respect to his account number.

(a) Employee required to show his account number card. Every individual who performs services in employment as an employee in a coverage group included in an agreement shall show his account number card to the State or political subdivision thereof by which he is employed so that his account number and his name can be recorded exactly as they are shown on his account number card as issued to him by the Social Security Administration. The employee shall Ishow his account number card as soon as he first performs services in employment as an employee in a coverage group included in an agreement entered into by any State. The account number originally assigned to an employee (or the number as changed in accordance with § 404.1241 (b)) shall be used by him even though he enters the employ of other employers or performs services in employment as an employee in a coverage group included in an agreement entered into by any other State.

(b) Duties if employee does not have an account number card in his possession (1) Where employee has no receipt for application for account number.

If when an individual first performs services in employment for wages as an employee in a coverage group included in an agreement, such individual does not have an account number card or a receipt issued to him by an office of the Social Security Administration acknowledging that application for an account number has been received, he shall furnish to the State or political subdivision by which he is employed, as the case may be, an application on Form SS-5 completely filled in and signed by him. If a copy of Form SS-5 is not available, the individual shall in lieu thereof furnish the State or political subdivision by which he is employed, as the case may be, a statement in writing, signed by him setting forth the date of the statement, his full name, present address, date and place of birth, father's full name, mother's full name before marriage, and the individual's sex and color, including a statement as to whether he has previously filed application on Form SS-5, and if so the date and place of such filing. The furnishing of an executed Form SS-5, or statement in lieu thereof, by the individual to the State or political subdivision, as the case may be, does not relieve such individual of his obligation to make application on Form SS-5 and file it with a district office of the Social Security Administration as required by § 404.1241; and when the individual has done so, and has received therefor a receipt acknowledging that application for an account number has been received, he shall promptly show such receipt to the State or political subdivision thereof by which he is employed. (For provisions related to the disposition to be made by the State of an executed Form SS-5 or a statement in lieu thereof furnished by the individual under this subparagraph, see § 404.1243(b) (2).)

(2) Where employee has receipt. If the individual for any reason does not have an account number card in his possession, he shall, in every case, show his account number card in accordance with paragraph (a) of this section as soon as he receives it, whether or not at that time he is still performing services in employment for wages as an employee in a coverage group included in an agreement. However, if such individual has available a receipt issued to him by an office of the Social Security Administration, acknowledging that application for account number has been received, the

individual shall show such receipt and thereafter shall show his account number card promptly upon its receipt by him. (For provisions related to the duties of the State when an individual shows such a receipt see § 404.1243 (a).)

(20 F.R. 3331, May 14, 1955, as amended at 24 F.R. 6616, Aug. 14, 1959]

§ 404.1243 Duties of State with respect to employees' account numbers.

(a) Where employee has account number or receipt. The State shall enter or cause the entry of the employee's name and account number exactly as shown on his account number card on all records, returns, reports, and claims to the extent required by §§ 404.1254, 404.1256, and 404.1265 of the regulations in this subpart and by the instructions relating to Form OAR-S3, for reporting wages, and Form OAR-S4, for reporting adjustments. Upon failure of an individual to show his account number card when he first performs services in employment as an employee in a coverage group included in an agreement, the State or the political subdivision by which he is employed, as the case may be, shall request the individual for such card. If he does not have an account number card and has not filed application for an account number with a district office of the Social Security Administration, the State or political subdivision, as the case may be, when the individual first performs services in employment as an employee in a coverage group included in an agreement, shall inform the individual of the provisions of § 404.1241 and § 404.1242. The State or political subdivision, as the case may be, shall also request him to show his account number card as soon as he receives it from the Social Security Administration. If the individual shows, as provided in § 404.1242 (b) (1), a receipt issued by the Social Security Administration acknowledging that application for account number has been received from him, the State or the political subdivision, as the case may be, shall enter in its records with respect to such individual the date of issue of the receipt, its termination date, the address of the issuing office, and the name and address of the individual exactly as shown in the receipt. The receipt shall be retained by the individual.

(b) Where employee has no account number. In any case in which the individual has not shown his account number card to the State or political

subdivision, as the case may be, prior to the time the State's report on Form OAR-S3 is filed for any quarter during which the employee receives wages from such State or political subdivision:

(1) If the individual has shown, as provided in § 404.1242 (b) (1) or (2), a receipt of the Social Security Administration acknowledging that application for account number has been received from him, the State shall enter or cause to be entered on the report with the entry with respect to such individual the words "Temporary Receipt" together with the name and address of the individual exactly as shown in the receipt, the date of issue of the receipt, address of the issuing office; or

(2) If the individual has furnished, as provided in § 404.1242(b) (1), an executed Form SS-5, or statement in lieu thereof, the State shall attach or cause to be atached a copy of such form or statement to the report. The State shall retain or cause to be retained the copy executed by the individual until he shows his account number card; or

(3) If the individual has not shown his account number card or an executed Form SS-5, and does not submit a statement to the State or political subdivision by which he is employed, as provided in § 404.1242(b) (1), the State or political subdivision shall file a statement in writing with a district office of the Social Security Administration, setting forth the date of the statement, full name of the employee, his present address, date and place of birth, father's full name, mother's full name before marriage, and the individual's sex and color, and, in lieu of the employee's signature, a notation that the employee refused to file application for account number. An account number will be assigned to the employee and communicated to the State or political subdivision furnishing such statement, and such account number will be entered on the wage reports filed with respect to the wages of such employee. When the individual shows his account number card or receipt the State shall return or cause to be returned to the individual any executed Form SS-5 or statement in lieu thereof together with copies thereof, furnished by such individual to the State or political subdivision in accordance with § 404.1242 (b) (1).

(c) Prospective employees. While not mandatory, it is suggested that the State advise or cause to be advised any pro

spective employee who does not have an account number card as to the requirements of §§ 404.1241 and 404.1242.

[20 F.R. 3331, May 14, 1955, as amended at 24 F.R. 6616, Aug. 14, 1959]

§ 404.1250 Wage reports and contribution returns in general.

(a) Wage reports. Every State which enters into an agreement shall make or cause to be made, with respect to individuals performing services in employment as employees in a coverage group included in an agreement, a wage report on Form OAR-S3 for each calendar quarter (whether or not wages are paid therein), beginning with the first calendar quarter with respect to which the agreement is effective, until it files a final report as required by the provisions of § 404.1252. Every State shall make such wage report on Form OAR-S3 with respect to employees of the State in each coverage group included in an agreement and shall obtain, with respect to employees in every other coverage group included in the agreement a complete and correct wage report on Form OAR-S3 for the employees in each such coverage group. The State shall prepare a recapitulation report, Form OAR-S2, identifying each political subdivision by the identification number assigned to each political subdivision and, where appropriate, identifying each political subdivision and each coverage group by the coverage group number and the payroll record unit number assigned to it, in accordance with instructions relating to Form OAR-S2, and shall file the original of the recapitulation report, along with the original of each wage report (Form OAR-S3), with the Department of Health, Education, and Welfare, Social Security Administration, Baltimore,

Maryland, 21235.

(b) Wage reports of remuneration for agricultural labor subject to $100 wage limitation. If any State which enters into an agreement shall, in accordance with section 218(c) (5) of the Social Security Act, exclude from such agreement with respect to any coverage group services the remuneration for which would be excluded from wages under paragraph (2) of section 209 (h) of the Act, the State shall include or cause to be included in the wage report on Form OARS3 and on any report of adjustments on Form OAR-S4 for such coverage group any remuneration paid in any calendar quarter for such services subject to the