                                 CODE OF VIRGINIA

PLANS OF AGREEMENT FOR COVERAGE OF EMPLOYEES OF POLITICAL SUBDIVISIONS (§
51.1-705)

A. Any political subdivision of the Commonwealth which desires coverage for its
employees, shall submit a plan of agreement for extending the benefits of the
Social Security Act to its employees to the state social security administrator
for approval. The state social security administrator shall approve plans of
agreement or amendments to plans of agreement that conform to the state social
security administrator&#8217;s rules and policies, except that no plan of
agreement or amendment shall be approved or adopted unless it:

   1. Conforms with the requirements of the applicable federal law and with the
   agreement entered into under &#xA7; 51.1-702.

   2. Provides that all services which constitute employment and are performed in
   the employ of the political subdivision by any employees thereof shall be
   covered by the plan of agreement.

   3. Specifies the source from which the funds necessary to make the payments
   required by subsection C of this section are expected to be derived and
   contains reasonable assurance that the source will be adequate for such
   purpose.

   4. Provides for the proper and efficient administration of the plan of
   agreement.

   5. Provides that the political subdivision shall make such reports, in such
   form and containing such information, as the state social security
   administrator may require and comply with such provisions as the state social
   security administrator or the federal agency may find necessary to ensure the
   correctness and verification of such reports.

B. The state social security administrator shall not finally refuse to approve a
plan of agreement submitted under subsection A without reasonable notice and
opportunity for hearing to each political subdivision affected.

C. Each political subdivision which has a plan of agreement approved under this
section shall pay to the Internal Revenue Service, at such time or times as may
be required by applicable federal law, contributions with respect to wages,
equal to the applicable taxes which would be imposed by the &#8220;Rate of
Tax&#8221; sections of the Federal Insurance Contributions Act if the services
covered by the agreement constituted employment within the meaning of that Act.

D. Every political subdivision required to make payments under subsection C is
authorized to impose upon its employees, as to services which are covered by an
approved plan of agreement, a contribution with respect to wages, not exceeding
the amount of tax which would be imposed by the &#8220;Rate of Tax&#8221;
sections of the Federal Insurance Contributions Act if such services constituted
employment within the meaning of that Act and to deduct the amount of such
contribution from wages. Failure to make such deduction shall not relieve the
employee from liability for such contribution.

HISTORY: 1952, c. 2, § 51-111.5; 1956, c. 561; 1977, c. 620; 1981, c. 479;
1982, c. 579; 1984, c. 430; 1990, c. 832; 2005, c. 902.