A pay stub usually contains three components that you need to create an accurate wage estimate:

1. a. 

   the amount the wage earner’s hourly pay;

2. b. 

   the number of hours the wage earner routinely works in a pay period; and

3. c. 

   the scheduled receipt dates (weekly, biweekly, bimonthly, etc.).

Request wage information for recipients and deemors at most initial claims, pre effectuation reviews and redetermination reviews. Post an estimate of wages for the subsequent 14 months any time you receive a report of new wage information.

NOTE: Consider whether the recipient, deemor, or representative payee of the recipient will be capable of reporting the wages via automated reporting methods. Recruiting monthly wage reporters to use the myWageReport application, Supplemental Security Income Telephone Wage Reporting (SSITWR) system, or the Supplemental Security Income Mobile Wage Reporting (SSIMWR) application is mandatory. Document all attempts to recruit wage reporters. For instructions on Monthly Wage Reporting – Recruiting Reporters, see SI 00820.144.

Recipients, representative payees, and deemors are the preferred source of wage information.

EXCEPTION: If the recipient, deemor or representative payee of the recipient cannot give enough information to create a logical wage pattern by providing the wage earner’s rate of pay, number of hours worked per pay period and number of pay periods in a month, you may need to contact a third party (i.e., SSA approved online wage verification companies, National Directory of New Hires (NDNH), or the employer). For information regarding creating a wage estimate from third party information, see SI 00820.150C.2. in this section.

At all stages in the life of the case, create a wage estimate that projects wage data for 14 months, beginning with the latter of:

• •

  the first month of employment, or,

• •

  the first month that will not create an overpayment attributable to the estimated wage amount.

For information addressing the Period for Which an Estimate is Required, see SI 00810.600.

For information on the interaction between income estimation and deeming, see SI 00810.620.

For more information on how to process wage estimates that reduces the recipient’s SSI payment amount, see SI 00820.150E, in this section.

Example of determining the wage estimate beginning date

On May 2 (before the Goldberg Kelly (GK) cutoff), a recipient comes to the field office and reports that they started working March 20 and received the first pay check in April. the recipient receives gross wages of $800 monthly and does not have any other income. Since their wages will not cause them to be ineligible for SSI, you post the new wage estimate beginning in April. The new wage estimate will reduce their SSI benefit beginning in June.

NOTE: Remind recipients, deemors, or representative payee that they are responsible for reporting all changes in income timely. Point out that they can report changes in wages via myWageReport, the SSITWR system, or the SSIMWR application. They may also report income via the phone, in-person, fax, or by mail.

1. a. 

   Establish a logical wage pattern by reviewing these factors with the wage earner:

   • •

     rate of pay,

   • •

     hours worked per pay period,

   • •

     pay date, and

   • •

     number of pay periods in each month.

2. b. 

   Be alert to wage earners who perform seasonal work (i.e., school bus drivers, circus help, and produce pickers).

3. c. 

   Base your estimate on the verified wage data on the Supplemental Security Record (SSR), without contacting the wage earner, if the employer or employee (i.e., recipient or deemor) reports regularly.

4. d. 

   Ask about any deductions that the employer may routinely withhold from the wage earner’s pay (i.e. cafeteria plan deductions, child support). For more information regarding earned income exclusions see SI 00820.500.

5. e. 

   Project any deductions and Blind Work Expenses (BWEs), Income Related Work Expenses (IRWEs), or Plans to Achieve Self-Support (PASS) if applicable. For information on substantiating:

   • •

     BWEs, see SI 00820.535,

   • •

     IRWEs, see SI 00820.540, and

   • •

     PASS, see SI 00870.008.

IMPORTANT: Estimate the wage amount based on exactly how often the employer pays the wage earner. Only use a monthly estimate when the employer actually pays the wage earner once a month. If the employer pays the wage earner weekly, estimate the wage amount according to a weekly pay schedule.

If the wage earner cannot provide the basic information of hourly pay, hours worked per pay period, and frequency of pay that you need to create a wage estimate, develop the evidence of wages following the procedure outlined in SI 00820.130C. If original pay slips are not available, take the following sequential steps:

1. a. 

   Check to see if the employer subscribes to an SSA approved wage verification company listed in SI 00820.147C.2. If the wage earner’s employer subscribes to the service, use the service to verify wages.

2. b. 

   If the employer does not subscribe to an SSA approved wage verification service, use the following sources to determine a wage estimate:

   • •

     photocopied pay slips;

   • •

     Interstate Benefit Inquiry (IBIQ), National Directory of New Hires (NDNH), SSA Access to State Records Online (SASRO) queries;

   • •

     Master Earnings File (MEF), W-2s, tax forms; or

   • •

     Non SSA-approved wage verification companies, only if an employer will not provide wage verification and refers you to a non-SSA approved wage verification company for wage information.

3. c. 

   Review the wage information and consider whether it is sufficient to determine a wage estimate. For more information about calculating a monthly wage amount from annual or quarterly wage data, see SI 00820.130C.7.a – SI 00820.130C.7.b.

   NOTE: Wage estimates built from NDNH data are subject to change as NDNH data is normally 6 months old. If the recipient, deemor, or representative payee of the recipient subsequently contacts you to report the wage earner’s hours changed since the last NDNH or MEF data:

   • •

     accept their allegation,

   • •

     post the new estimate,

   • •

     document the conversation on a Report of Contact and lock it, or on an SSA-5002 (Report of Contact) in non-SSI Claims system (i.e., non-MSSICS).

4. d. 

   If you need more information, call the employer, or if not available by phone, send an SSA-L4201-BK (Letter to Employer Requesting Wage Information) to them via fax or mail. For more information on the SSA-L4201-BK, see SI 00820.145.

If you speak with the wage earner or contact a secondary source as listed in SI 00820.130A.2., but you are not able to obtain all the information required to create an accurate wage estimate (i.e., the hourly rate of pay, the number of hours worked per pay period, or the pay date and the frequency of pay), use your judgment to create as accurate an estimate as possible.