May 15, 1985
Memorandum for the Heads of Executive Departments and Agencies
Subject: Coordination of Determinations on Social Security for Federal Personnel
Under the Social Security Amendments of 1983, Federal employees hired on or after January 1, 1984, as well as certain other Federal officers and employees, will be fully covered under the Social Security system. Under section 205(p) of the Social Security Act (42 U.S.C. 405(p)) and section 3122 of the Internal Revenue Code (26 U.S.C. 3122), the head of each Executive department or agency is vested with the responsibility for determining which personnel of the department or agency are employees covered by Social Security and what amounts of their remuneration are subject to withholding of Social Security tax.
In order to ensure that Social Security coverage and taxation will be consistently and efficiently applied within the Executive branch in conformance with the Social Security Act and the Internal Revenue Code, I am hereby directing that the Internal Revenue Service and the Social Security Administration provide guidance to Executive departments and agencies concerning Social Security coverage and taxation for Federal personnel, including applicable regulations and published rulings and procedures. I ask the heads of Executive departments and agencies to follow such guidance in making their determinations under the aforementioned sections 205(p) and 3122.
Ronald Reagan