The match compares the annual earnings amount as reported on Form W-2 or Schedule SE to the amount on the SSR for the tax year. The MEF data may constitute wages, net earnings from self-employment, or sheltered workshop payments. When the MEF data indicate significant overreported wages and if the wage amount on the SSR is more than what is reflected on the MEF, a J3 diary is set and controlled by PE ODS. A J5 diary is set if the wage amount on the SSR for a deemor or essential person is more than what is reflected on the MEF. The discrepancy can be determined by reviewing a Detailed Earnings Query (DEQY) printout and comparing it to the information posted to the SSR. The FOs must resolve the discrepancy, update the SSR, determine past and continuing SSI eligibility, and release any underpayments that may be due.

The initial release of MEF cases coincides with the first redetermination release of the fiscal year. A supplemental release is usually scheduled for March and September.

If the date of eligibility is January 1 or later of the tax year involved, the interface sets a J3 diary if the recipient or deemor's earnings on the SSR are more than what is reflected on the MEF. The diary is set for over tolerance discrepancies of more than $1,000 annually.

If the date of eligibility is later than January of the tax year involved, the interface sets a J5 diary if the deemor or essential person's earnings on the SSR are more than what is reflected on the MEF. The diary is set for over tolerance discrepancies of more than $2,000 annually. In addition, the deemor must have either:

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  No wages on the SSR, or

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  The MEF data indicates an amended return

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  The SSR already has a J3 or J5 diary; or

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  The SSR has a payment status other than CO1, N01, or MO1; or

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  When the earnings are for a deemor, the SSR shows that the deemor is receiving income based on need (IBON).

You are not required to do any development for a MEF earnings diary if the earned income could not affect SSI eligibility or payment. You may delete the diary without making any contact to verify the amount of income or when it was received. In this case, do not transmit the earned income to the SSR.

An example of this is when the earned income is for an ineligible parent, but the deeming allocations for ineligible children in the household would mean there could not be “deemed income” for the eligible child even if all the earned income were received in one month in the year.

See SI 02310.007A. for rules for Limited Development.

If the criteria for “NO DEVELOPMENT” and “LIMITED DEVELOPMENT” do not apply, you must follow the instructions in SI 02310.007B. for FULL DEVELOPMENT.

Coordinate MEF match development with scheduled FO redeterminations or other pending posteligibility activity (e.g., other interface alerts, continuing disability review, representative payee accounting).

1. a. 

   If the earnings are for an individual who also receives a title II disability benefit, determine if there is a need for a review of the work activity.

2. b. 

   If the earnings belong to a recipient who does not receive a title II benefit, determine whether the recipient is eligible for title II benefits.

Use this opportunity to inform recipients about work incentives. Emphasize future reporting responsibilities and advise blind/disabled individuals of the SSI work incentive provisions. (See SSI Work Incentives – General, SI 02302.006; Earned Income Exclusions – General, SI 00820.500; and Plans to Achieve Self-Support — Overview, SI 00870.001.)

Identify records with MEF diaries (J3 or J5) by accessing the PEODS system. Obtain an SSID to determine to whom the MEF data pertain. (See MEF/SSR Earned Income Enforcement Interface, SM 02001.600.)

Obtain a DEQY for the individual to obtain specific MEF data — i.e., amount of the wages and name and address of the employer.

The MEF data contain tax data. Therefore, follow the instructions in SI 02310.040 - SI 02310.042.

If development is required per SI 02310.007B., contact the recipient according to SI 02310.042 to discuss the MEF data.

Do not develop further if the earnings were for a period prior to eligibility and the taxpayer alleges that the income stopped prior to the first month of eligibility.

If the individual agrees with the MEF data, request evidence from the individual to establish his/her countable income. If he/she has insufficient evidence, or disagrees with the MEF data, use an SSA-L4201-BK, or obtain a signed authorization (e.g., SSA-8510) to contact the employer for verification.

If he/she has insufficient evidence of SEI or alleges no SEI, following the instructions in RS 01804.400.

The MEF income data represent the amount received in a year. Obtain a monthly amount for SSI purposes if the income constitutes countable income.

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  See SI 00820.100 - SI 00820.160 for wage development.

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  See SI 00820.200 for self employment income development.

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  See SI 00820.300 for sheltered workshop payment development.

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  See SI 00820.005 for sick pay development.

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  See SI 02310.005C.5. regarding administrative finality. The SSR transaction date (SE transaction code) is the date of the “affirmative action in writing”.

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  See SI 02310.040 to destroy the DEQY printout.

1. a. 

   Documentation — MSSICS — Individual Has Earned Income

   • •

     Document wage development on the IWAG screen (MSOM MSSICS 016.003);

   • •

     Document self-employment income development on the ISEI screen (MSOM MSSICS 016.004);

   • •

     Document sheltered workshop payment development on the IWAG screen (MSOM MSSICS 016.003);

   • •

     Document sick pay development on the ISPE screen (MSOM MSSICS 016.002).

2. b. 

   Documentation — non-MSSICS — Individual Has Earned Income

   See references in SI 02310.055D.5.

3. c. 

   Diary Clearance Input

   • •

     MSSICS - Complete the DDOC screen (MSOM MSSICS 022.012) and build transaction SSR.

   • •

     Non-MSSICS - Transmit earned income to the SSR (See SM 01305.101.) Transmit diary deletion to the SSR via SSA-1719B input. (See SM 01301.220.)

If the earnings do not belong to the recipient or deemor, scrambled earnings may be involved. Follow RM 03870.004B.1., NOTE, for resolution.

If correction of the MEF is necessary, see RS 01405.001. See RS 01505.031 for cases involving State and local government employers.