Section 218 of the Social Security Act allows states to enter into an agreement with the social security administration to extend social security coverage to employees of the state or any subdivision thereof.

A question arose as to whether or not motor license agents appointed by the Oklahoma Tax Commission were employees of the state or independent contractors.

Although the state designated them as independent contractors, this designation was not the controlling factor. The motor license agents by statute were subject to the direction and control of the state through the Tax Commission. They were removable at will by the Tax Commissioner, were required to furnish and file bonds, and needed to perform all the duties the Commissioner required of them.

Because they were employees of the state, the motor license agents were covered for social security purposes under the state’s section 218 agreement.

See Social Security Ruling (SSR) 68-23.

This material should not be construed as legal advice for any particular fact situation, but is intended for general informational purposes only. For advice specific to any individual situation, an experienced attorney should be contacted.