Technical Bulletins: Social Security Coverage For Local Government Employees

The Omnibus Budget Reconciliation Act of 1990 (OBRA), passed by Congress in November 1990, placed new requirements on local governments for withholding Social Security taxes on wages paid to employees. Final regulations were issued by the U.S. Department of the Treasury and the Internal Revenue Service on June 28, 1991. These regulations affect all public sector employees who are not part of , a qualified retirement plan. Because of uncertainties I.and questions regarding the provisions of the law, this Technical Bulletin offers answers on how the act affects municipal governments in Tennessee.

The MTAS publications provided on this website are archival documents intended for informational purposes only and should not be considered as authoritative. The content contained in these publications may be outdated, and the laws referenced therein may have changed or may not be applicable to your city or circumstances. For current information, please visit the MTAS website at: http://mtas.tennessee.edu