What does form 2032 allow an employer to do?

Form 2032, also known as the "Agreement to Extend Social Security Coverage," allows an employer to extend Social Security coverage to specific employees who are not otherwise covered under Social Security. This form is primarily used in situations where a governmental entity, or certain other types of employers, opts to provide Social Security coverage to certain employees who might not automatically receive it due to their employment status.

By submitting this form, the employer ensures that the employees listed will have their earnings reported to Social Security, allowing them to accumulate Social Security credits that are vital for future benefits. This is particularly important in work scenarios where employees might only be covered by a different retirement or health plan, ensuring they have equitable access to Social Security benefits upon retirement or in case of disability.