Download Form SSA-1945 Statement Concerning Your Employment in a Job Not Covered by Social Security
How to Use Form SSA-1945?
Employers are obliged to use the Social Security Form SSA-1945 to fulfill the requirements of the U.S. law. The document states that the employee's earnings from this job are not covered under Social Security. Besides, it contains an explanation of provisions in the Social Security law for the employees who receive a pension based on a job not covered under Social Security.
There are two such provisions:
- Windfall Elimination Provision;
- Government Pension Offset Provision.
The first one affects the calculations of your retirement or disability benefits. If your employer does not withhold from your salary Social Security taxes, any retirement or disability pension based on this job can reduce the amount of Social Security benefits you may be entitled to.
According to the second, if you are entitled to receive a federal, state, or local government pension based on the job you did not pay Social Security taxes for, any Social Security spouse or widow(er) benefits you become entitled will be offset. Thus, the amount of your Social Security payments will be reduced by two-thirds of the amount of your pension.
An SS employer has to provide you with a SSA-1945 for reading and signing, to make sure you are fully aware of the potential effect of these provisions on your future Social Security benefits. The document also contains examples of possible monthly reductions of the Social Security benefits, formulas, according to which you can calculate the potential reductions, and toll-free phone numbers you can call for any additional information.
Form SSA-1945 Instructions
General filing instructions are as follows:
- The employer is obliged to provide you with the Form SSA-1945 before the employment starts;
- You must read the form carefully. If something is unclear or you have further questions, contact the nearest SSA office or call the number provided on the form. The SSA officials can also inform you about exceptions to each provision;
- Print your name and ID at the top of the form;
- You may be required to print the name and ID of your employer too in some cases;
- Sign the form and provide the date in the applicable fields at the bottom of the page;
- Make a copy of the document for future references;
- Return the completed form to your employer.
The employer will submit a copy of the signed form to the pension paying agency.