Form 2032: Contract Coverage Under Title II of the Social Security Act
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Form 2032: Contract Coverage Under Title II of the Social Security Act

Form 2032 is an application for Contract Coverage Under the Federal Employees’ Compensation Act (FECA) and allows American employers to extend Social Security coverage to U.S. citizens and resident aliens employed by their foreign affiliates. It must include the name and address of the contractor, date of the contract, amount of the contract, and the name and Social Security number of each employee to be covered, and must be completed and signed by the contractor and the contracting officer and filed with OWCP within 30 days.

What is Form 2032?

Form 2032 is an application used by contractors to provide coverage for employees performing services under a US government contract. It must include the name and address of both contractor and contracting officer, contract date, type, amount, and the name and Social Security number of all employees to be covered, as well as an agreement to comply with FECA regulations. American employers can additionally use Form 2032 to extend Social Security and Medicare coverage to U.S. citizens and resident aliens employed by foreign affiliates, as long as the employer meets the criteria outlined by the form. In this agreement, an American employer must be a US resident, partnership, trust, or corporation. Form 2032 can be used to enter into, amend, or elect to apply the rules in effect after April 20, 1983, to agreements made prior to it. Lastly, US citizens abroad may be affected according to Social Security totalization agreements in place with other countries.

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IRS Form 2032 – Who Needs to Fill It Out?

Form 2032 is used to extend Social Security coverage to U.S. citizens and resident aliens employed by the foreign affiliates of an American employer. Any American employer (not just domestic corporations) can complete and file this form with the Office of Workers’ Compensation Programs (OWCP) within 30 days of the date of the contract, including all necessary information and a statement that the employer agrees to meet all FECA regulations. Companies who had this form filled prior to April 21, 1983, may elect to apply the post-April 20, 1983 rules, which would extend coverage to U.S. resident alien employees at foreign subsidiaries where U.S. citizens were already included. Employers must meet certain criteria, such as U.S. residents, partnership of two-thirds or more U.S. residents, trust with all U.S. trustees, or a U.S. or state-formed corporation.

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Step-by-Step: Form 2032 Instructions For Filling Out the Document

Filling out Form 2032 is a straightforward process. First, the contractor and contracting officer must complete the form, which requires the name and address of the contractor, the name and address of the contracting officer, the date of the contract, the type of contract, the amount of the contract, and the name and Social Security number of each employee to be covered. The form must also include a statement that the contractor agrees to comply with all applicable FECA regulations. It must be filed with the Office of Workers’ Compensation Programs (OWCP) within 30 days of the date of the contract. Depending on when their contract was made, employers may also need to take into consideration the United States’ totalization agreements with certain countries or their agreement may have to meet the requirements of the new 10% ownership rule in place after April 20, 1983. Ultimately, Form 2032 is used by American employers to extend Social Security coverage to U.S. citizens and resident aliens employed by their foreign affiliates.

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Below, we present a table that will help you understand how to fill out Form 2032.

Information Required for Form 2032 Details
Contractor and Contracting Officer Details Name, address, contract type, and employee information
Compliance with FECA Agreement to comply with FECA regulations

Do You Need to File Form 2032 Each Year?

The form must be filed with the Office of Workers’ Compensation Programs (OWCP) each year within 30 days of the date of the contract. Any American employer, including U.S. citizens, resident aliens, domestic corporations, foreign subsidiaries, or any foreign entity in which the employer owns at least a 10% interest, is required to file the form. In order to file, specific information regarding the contractor, the contracting officer, and the employees must be included on the form. Employers can use the form to either enter into a new agreement, amend a previous agreement, or elect to apply the rules in effect after April 20, 1983 to agreements in effect on that date. U.S. citizens and resident aliens employed by a foreign affiliate should be sure to submit the necessary paperwork to ensure their social security coverage.

Download the official IRS Form 2032 PDF

On the official IRS website, you will find a link to download Form 2032. However, to make it easier for you, we are providing the link in our article, which comes directly from the official irs.gov website! Click to download: Form 2032

Sources:

https://www.irs.gov/forms-pubs/about-form-2032

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