If you performed services after 1967 that were:
Compensated solely on a fee basis performed as an employee of a State or political subdivision of a State; and
Not covered under a Federal-State coverage agreement, then Your earnings must be counted as self-employment earnings.
If you were an employee who in 1968 performed services as described above, you could have made an irrevocable election not to have such fees constitute net earnings from self-employment for 1968 and later.
The exclusion of fees from net earnings would have been obtained by filing the certification of election with the Internal Revenue Service on or before the due date of your tax return for 1968. If you did not file this certification, you must count the earnings as self-employment earnings.
If the services are covered under an agreement between the Secretary of Health and Human Services and the State for which the services are rendered, as described in Chapter 10, the services are covered as employment.
Last Revised: March, 2001
Social Security Handbook