(See RS 02510.001B.1.) A beneficiary should report their expected earnings when those earnings exceed the annual exempt amount and when changes in expected earnings would affect benefits payable.

1. a. 

   Beneficiary name, address, and Social Security number;

2. b. 

   Estimated earnings for the current year;

3. c. 

   Nonservice months, if monthly earnings test applies;

4. d. 

   Any special payments, or earnings to be excluded;

5. e. 

   Name and address of person making the report.

In writing, by telephone, or by visiting a field office. If the beneficiary reports in writing, they may use one of the following:

1. a. 

   SSA-L9778-SM(SUP), SSA-L9779-SM(SUP), SSA-L9781; mid-year and monthly mailer.

2. b. 

   Work report processed as part of the initial application process.

3. c. 

   Returned checks received with an indication that the beneficiary is working.

4. d. 

   Any written reports containing all the necessary information (RS 02510.005A.2).

If a beneficiary is unsure of their estimated earnings try to help determine a reasonable estimate using whatever information is available. Explain that the estimate can be revised at any time. If the beneficiary elects not to receive payment until after the close of the year, enter an estimate of "999999" and send a notice indicating that no payment is due because earnings are over the allowable amount.

Discourage a stop work report more than 4 months in advance.

If the stop work report is based on a mandatory retirement date or the beneficiary insists on reporting more than 4 months in advance:

1. a. 

   Accept the report if the effective date is within 12 months of the current operating month (COM).

2. b. 

   Ask the beneficiary to report any future change in work plans.

1. a. 

   Accept start work reports if the effective date is within 12 months of the COM. Do not encourage a start work report more than 4 months in advance.

2. b. 

   Ask the beneficiary to report any future change in work plans.

If an estimate is received for the closed year or a current year report made before the close of the operating year is not processed before the end of the year:

• •

  Do not process the estimate for the closed year.

• •

  Notify the beneficiary that we were unable to process the estimate before the close of the year.

  NOTE: The notice should explain that we will adjust their benefits based on the actual earnings for the year, when we know the amount. We will do this automatically when the earnings are posted to the earnings record. If preferred, they may contact SSA to file a report.

• •

  If the beneficiary contacts us to file a report, question the current year's work activity, and verify that the current year estimate, and or any non-service months (if applicable) are on the MBR. Input a current year estimate and NSM if applicable.

• •

  If the work report is a returned check, the field office should input the remittance into the Debt Management System (DMS) (use the RFOR screen — see MSOM DMS 003.006) and revise the work estimate.

Late reports (reports received after work has resumed) of work are processed as any other current year report. However, accept any checks that are voluntarily returned.

The term "special payment" refers to earnings that do not count under the earnings test, usually because they are attributable to services performed in a year prior to the year in which the payment is made (wage situations) or are attributable to services performed prior to the first month of entitlement to benefits (Net Earnings from Self-employment). See RS 02505.025 and RS 02505.125. If a special payment is involved the amount of the payment must be "posted" to the Master Earnings File (MEF) to ensure that the correct earnings for deduction purposes will be calculated by the Enforcement Program. See RS 02510.016 - RS 02510.021.

If estimate shows earnings over the yearly limit but is not specific (e.g., not sure but more than "14500"), encourage a high estimate. (See RS 02501.105.) Accept any dollar amounts qualified by "under" or "approximately" as the estimate.

When an original or revised estimate is received the work notice is input and the Title II Redesign (T2RD) system will:

• •

  Make payment if payment is due for at least one full month of the current year.
  
   
  
  NOTE: See RS 02501.110 if the beneficiary requests payment of any partial month benefit based on the estimate.

• •

  Suspend benefits if full payment cannot be made for any month in the year.

See NL 00601.040A for events requiring a notice.

Suspend auxiliary benefits whenever we suspend numberholder (NH) benefits for work activity; however,

• •

  Pay benefits to an entitled divorced spouse regardless of the NH's work in certain situations (RS 02501.021B.5.b),

• •

  Pay auxiliaries if the NH has disappeared and there is reason to believe the NH is not working. (See GN 00304.025).

Input multiple start and stop, intermittent nonwork months and future start work reports subject to the restrictions in SM 00605.005C.

Most work reports will be taken directly from the beneficiary and there will be no paper form to retain. Destroy any written work reports after input.

When a work report is processed manually, the SIC code of 17 should NOT be coded for any current year incorrect payments. These payments are not overpayments

If suspension is due to work activity for December, suspense continues into January of the following year, unless:

1. a. 

   we receive and process a work notice that allows full payment to be made for the following year, i.e., work deductions are not required, or

2. b. 

   the beneficiary attains full retirement age in the current year, or

3. c. 

   benefits are terminated during the year.

When work deductions are required, the law specifies that we make deductions from current year benefits beginning with the first month of entitlement in the year, and continuing until all "excess earnings" are withheld. When we receive a new estimate late in the current year or a revised estimate that requires additional withholding, any payments that were made earlier in the year are considered to be "incorrect payments". We are allowed to immediately withhold any current year benefits that are due in order to recoup any "incorrect payments" that were made. The beneficiary has no right to appeal this action. (The beneficiary may submit a new work notice if our action was incorrect). Incorrect payments may only be withheld from current year benefits.

At the end of the year, when we know how much the actual earnings were, we then make a determination of benefits payable. If the beneficiary was overpaid, they receive a notice of our determination and have a right to appeal the overpayment. If no appeal is made or if the appeal is unsuccessful, we can then withhold the overpayment for the prior year, from the current year benefits.

However, benefits due for other than the current year (e.g., an underpayment for a prior year) are used by T2RD to adjust incorrect payments for the current year, but may not be used in manually processing estimates.