§ 138. Contributions by political subdivisions and employees thereof.
1. Each political subdivision, the agreement of which has been approved,
is hereby authorized and directed to pay into the contribution fund at
such time or times as the director may prescribe in his regulations,
contributions with respect to wages of its employees covered thereunder
equal to the amount of the taxes which would be imposed by sections
thirty-one hundred one and thirty-one hundred eleven of the federal
insurance contributions act, if the services covered by the agreement
constituted employment within the meaning of that act.

2. Each political subdivision, the agreement of which has been
approved, is hereby authorized and directed to deduct and collect from
the wages paid to each employee covered by its agreement contributions
equal to the amount of the tax which would be imposed by section
thirty-one hundred one of the federal insurance contributions act, if
the services covered by the agreement constituted employment within the
meaning of that act. Contributions so deducted and collected shall be
held in trust for payment to the contributions fund by the political
subdivision as required by subdivision one of this section. Failure to
collect or deduct such contributions shall not relieve the political
subdivisions or the employee of liability therefor.

3. If the correct amount shall not have been paid into the
contribution fund by any political subdivision, proper adjustments, or
refund without interest if the director shall determine that adjustment
is impractical, shall be made.

4. If the correct amount shall not have been deducted and collected by
a political subdivision from the wages of an employee pursuant to this
article, proper adjustments, or refund without interest if adjustment is
determined to be impractical, shall be made by such political
subdivision, in such manner and at such times as may be prescribed in
the regulations of the director.