---
kind: "section"
citation: "20 C.F.R. § 404.1073"
title: "20"
number: "404.1073"
heading: "Public office."
url: "https://uscodex.org/cfr/20/404.1073"
---

# §404.1073. Public office.

- (a) **General.** The performance of the functions of a public office is not a trade or business except under the circumstances explained in [paragraph (b)](#b) of this section. If you are an officer of a State or political subdivision, you are considered as employee of the State or political subdivision.
- (b) **State and local governmental employees paid by fees—**
  - (1) **Voluntary coverage under section 218 of the Act.** The services of employees of States and political subdivisions, including those in positions paid solely on a fee-basis, may be covered as employment by a Federal-State agreement under section 218 of the Act (see [subpart M](/cfr/20/subpartM.md) of this part). States, when entering into these agreements, have the option of excluding under the agreement coverage of services in positions paid solely by fees. If you occupy a position paid solely on a fee-basis and the State has not covered your services under section 218 of the Act, you are considered to be engaged in a trade or business.
  - (2) **Mandatory old-age, survivors, disability, and hospital insurance coverage.** Beginning with services performed after July 1, 1991, Social Security coverage (old-age, survivors, disability, and hospital insurance) is mandatory, with certain exceptions, for services performed by employees of a State, a political subdivision of a State, or of a wholly owned instrumentality of one or more of the foregoing, if the employees are not members of a retirement system of the State, political subdivision, or instrumentality. Among the exclusions from such mandatory coverage is service performed by an employee in a position compensated solely on a fee-basis which is treated pursuant to section 211(c)(2)(E) of the Act as a trade or business for purposes of inclusion of such fees in the net earnings from self-employment.
  - (3) If you are a notary public, you are not a public officer even though you perform a public function. Your services as a notary public are not covered for social security purposes.

## Notes

### Amendments

[45 FR 20075, Mar. 27, 1980, as amended at 57 FR 59910, Dec. 17, 1992]

### Authority

Authority: Secs. 202(v), 205(a), 209, 210, 211, 229(a), 230, 231, and 702(a)(5) of the Social Security Act (42 U.S.C. 402(v), 405(a), 409, 410, 411, 429(a), 430, 431, and 902(a)(5)) and 48 U.S.C.1801.

### Source

Source: 45 FR 20075, Mar. 27, 1980, unless otherwise noted.

### Amendments

[45 FR 20075, Mar. 27, 1980, as amended at 57 FR 59910, Dec. 17, 1992]