State Social Security - IRS Division

Administrator: Amanda Schmitgen

State Social Security Administrators Are Responsible For:

  1. Serve as a liaison between the Social Security Administration and the Internal Revenue Service and all state and local government employers in the state;

  2. Administer and maintain the Section 218 Agreement that governs voluntary social security and medicare coverage by state and local government employers in the state;

  3. Prepare Section 218 modifications to include additional coverage groups, correct errors in other modifications, identify additional political subdivisions that join a covered retirement system, and obtain medicare coverage for public employees whose employment relationship with a public employer has been continuous since March 31, 1986;

  4. Provide the Social Security Administration with notice and evidence of the legal dissolution of covered state or political subdivision entities;

  5. Conduct referenda for social security and medicare coverage for services performed by employees in positions under a public retirement system;

  6. Resolve coverage and taxation questions associated with Section 218 Agreements and modifications with the Social Security Administration and the Internal Revenue Service;

  7. Advise public employers on social security, medicare, and other tax withholding matters;

  8. Provide information to state and local public employers as appropriate and in accordance with the state's enabling legislation, policies, procedures and standards;

  9. Provide advice on Section 218 optional exclusions applicable to either the state or individual modifications, or both, and advice on state and local laws, rules, regulations and compliance concerns;

  10. Maintain physical custody of the state's Section 218 Agreement, modifications, dissolutions and intrastate agreements; and

  11. Deposit and report social security tax and federal income tax to the Internal Revenue Service.

Collection and transmission of income taxes from state employees to the Internal Revenue Service is a responsibility of the Office of the State Auditor. Taxes collected are remitted in a timely fashion and must be done at least eight times monthly.

Social Security obligations of state employees are deducted by the office. The funds and information to properly credit the employees are transmitted to the Social Security Administration in Baltimore, Maryland.

SDCL 3-11-3. Division in state auditor's office. There is hereby created a State Social Security and the Internal Revenue Service Division in the office and under the direction of the state auditor.

SDCL 3-11-7. Payment of employer's share for state employees -- Payroll deductions of state employee's share -- Disbursement. The state auditor shall issue warrants upon the funds in the state treasury, hereinafter appropriated, for such amount as may be required to pay the employer's tax upon wages and salaries of all state employees and shall deduct from the wages and salaries of all state employees covered by this chapter, the amount required to pay the employee's tax under the federal old age and survivors insurance system. Such moneys shall be disbursed upon warrants issued by the state auditor pursuant to sworn vouchers executed by the administrator of the State Social Security and the Internal Revenue Service Division.

For more information contact: Amanda Schmitgen