 January | VOLUME #125
 The 2015 Comprehensive Annual
Financial Reports (CAFR) for the PERS and TRS are now available online. To request
hard copies, please call (907) 465-5711. The financial statements are also
available.
PERS Publications
TRS Publications
State and local governmental employers are classified for
Federal Insurance Contributions Act (FICA) purposes as either mandatory or
Section 218 (voluntary). FICA is the federal tax law which requires employers
to withhold taxes from employee earnings and funds the Social Security and
Medicare programs.
Mandatory Coverage
Mandatory coverage can be simply explained as, “it is mandatory
that you enroll your employees in Social Security unless they are enrolled or
tied to a qualified FICA replacement system.” PERS and TRS are qualified FICA
replacement systems. In general, PERS and TRS employees working for a mandatory
employer should not be enrolled in Social Security. State and local government
employees hired (or rehired) after March 31, 1986 are subject to mandatory
Medicare coverage.
Voluntary or Section 218 Coverage
A Section 218 agreement is a written voluntary agreement between
the states and the Social Security Administration to provide Social Security
coverage to state and local government employees. Section 218 refers to 218 of
the Social Security Act. All 50 states have Section 218 Agreements. Political
subdivisions of states are allowed to join their state's Section 218 Agreement
via a modification to the original state agreement. Section 218 Agreements
allow employers and their employees who are covered by a qualified FICA
replacement retirement system to also be enrolled in Social Security. State and
local government employees hired (or rehired) after March 31, 1986 are subject
to mandatory Medicare coverage.
The
FICA coverage rules above are meant to be a general guide to Social Security and
Medicare coverage for governmental employers. Every one of our ~240 State of
Alaska political subdivisions are unique! Should you have any questions
about your entity, please do not hesitate to contact us directly and please
contact us prior to making any changes to your entity based on the information
above.
Melanie
Helmick
State Social Security Administrator
Nimeri
Denis
Assistant State Social Security Administrator
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 Social Security's Old-Age, Survivors, and Disability Insurance (OASDI) program limits the amount of earnings subject to taxation for a given year. The Social Security wage base limit changes each year with changes in the national average wage index, however, this limit has not changed from last year and remains $118,500 for calendar year 2016. There is a wage limit for Defined Benefit Plan members and a contribution limit for Defined Contribution Plan members. Read more...
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Employers may scan and email their Employer Summary to the
following email address:
doa.drb.employerpayroll@alaska.gov
Using this email address is fast and efficient and is less likely to be
lost. This email address is the designated email address for the Employer
Summary.
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