TN 8 (08-84)

RM 02031.004 Review Offset Duplicate Posted Items List — 1865 (DEO-ERB)

  1. Receive the Offset Duplicate Posted Items List

    1. This listing contains the exact duplicate original and exact duplicate corrected wage items for which an offset credit item was generated.

    2. Exact duplicate items from exact duplicate reports (processed totals equal) are not listed individually. See Exact Duplicate Report Informational Listing described in RM 02031.001.

    3. The offset listing is to be used as a work copy to review the duplicate items to verify that the offset generated was proper.

    4. It reflects the first 1,000 EXD items of each report followed by the total for number of EXD items identified, although not listed, including the total FICA wages, and total compensation.

    5. The list is in EIN and year order with the items listed in MRN sequence order.

    6. The following information is listed for each item:

      1. EIN

      2. Type of report (Type of Item)

        1. Current form W-2 FICA            A

        2. Current corrected form W-2 FICA   E

        3. Delinquent W-2 FICA              I

        4. Delinquent corrected W-2 FICA     L

      3. SSN

      4. Surname

      5. Initials

      6. Type of Employment

        1. Regular                          A

        2. Military                          E

        3. Agricultural                      M

        4. Household                        P

        5. Tips                             T

        6. State & local (Wages)              G

        7. State & local (Tips)                  S

      7. FICA Earnings

      8. Period

      9. Microfilm Reference Number (MRN) of

      10. Establishment

      11. Total Compensation (Gross Wages)

    7. Generally, only the actual posted items are listed. However, in some cases where both corrected wages and corrected tips are involved, the same items may have listed more than once. It, therefore, will be necessary to obtain ERF's when working these cases to determine actual items posted.

    8. There will be instances where only one of the duplicate wage items will be listed.

      1. This can occur if three reports are involved with two being exact duplicates and all three containing some of the same EXD items.

      2. Only EXD items from the non-exact duplicate report will be listed out.

      3. EXD items from EXD reports will be reflected on the Exact Duplicate Report Informational List.

  2. Receive the Duplicate Wage Employer Report Information Listing

    1. This listing reflects the Report Employer Listing (REL) information for the most current years of employer reports related to the duplicate items.

    2. This listing is intended to eliminate manually scouting employer information to the REL.

    3. If the EIN is noted “Unmatched” or the REL information is not listed for a prior year's report it will be necessary to scout the REL for the related employer information.

  3. Generally, an offset credit item is generated each time an exact duplicate item is posted to the earnings record. However, there are instances when an offset would not be generated. Some instances are as follows:

    1. A corrected item was posted prior to an exact duplicate original item being posted.

    2. An offset was not generated if an internal adjustment (matching on wages) was posted prior to the EXD offset process started in the 1-83 posting run. Many internal adjustments were already posted or in process prior to the offsets and therefore, were not generated because the internal adjustments were considered to be the corrective actions.

    3. Because of the need to recognize the internal adjustment, a second exact duplicate item posted will not be offset, nor will it be identified if the first duplicate item was corrected by an internal adjustment.

  4. A corrected W-2 item posting after a EXD offset has occurred will only generate one offset credit item.

  5. It is not the intent of this procedure to investigate every duplicate offset case, but to make a random review of all cases and those that appear to be questionable. Some questionable type cases that are to be investigated are as follows:

    1. Possible scrambled wages: Surname or initials different.

    2. Possible item keyed under incorrect SSN: The total compensation will be different for the two items.

    3. Multiple W-2 Filer (Union or temporary employment reports) - Many exact duplicate items with small amounts repeated.

    4. Partial duplicate reports: (Employer filed new original W-2 report with changes.) - All but a few items of the report are exact duplicates.

  6. In determining if the offset was proper or that the correct earnings are posted one or both of the following records should be compared with the listed items:

    1. The microfilmed form W-3 and W-2 records.

    2. An ERF printout of the wage earner's record.

  7. With the exceptions as noted in this subchapter, duplicate items in suspense will be handled when reinstatedand identified on a subsequent duplicate listing.

  8. For the most part, the investigation of exact duplicate corrected items should be handled the same as exact duplicate original items. However, there are certain conditions which must be considered when working these cases:

    1. Partial duplicate corrected items involving the same report would be listed on the Duplicate Posted Items List and should be handled under section RM 02031.007.

    2. There are certain instances when a corrected W-2 will not offset the original item. If it is found that the original items were not offset, take the necessary steps to have them canceled. Some reasons for the non-offset conditions are as follows:

      1. Items are under two different establishment numbers.

      2. The employment codes are different.

      3. A corrected W-2 showing zero in the tip field will not offset the tips of the original W-2. If the original tips and wages were exactly the same, they would have listed out on the Duplicate Posted Items Listing and canceled.

    3. Many corrected W-2's are intended to correct something other than FICA earnings and in many cases the FICA earnings field is left blank. This blank field will generate a zero corrected wage amount which will in turn offset the original wage item. All exact duplicate corrected zero amounts should be examined to determine if the original wages were offset in error.

      1. Examine the forms and obtain an ERF printout.

      2. If there is an indication that the original wages were to be canceled, no action is required.

      3. If there is no indication that the original wages were to be canceled, consider the offset in error. Prepare the necessary adjustment to restore the original wages.

    4. Be aware that if the corrected form W-2 involved wages and tips with only one being changed and the other remaining the same, the wages and tips would be listed out on separate listings. No special action should be required.

  9. Listed, but not inclusive, are some of the findings and actions that are to be made when reviewing the items on the listing.

    1. Offset deemed correct: No action required.

    2. Offset in error: Restoration of earnings required.

    3. Partial duplicate items located: Cancel partial duplicate items when it can be determined which items are correct.

    4. Incorrectly processed items: Adjust as required.

    5. Offset questionable: Prepare informational form to notify the Office of Pre-Claims Requirements.

  10. When working the listing, follow the instructions listed when applicable.

    1. Prepare all adjustments. The adjustment should describe the reason the action is being taken.

    2. Prepare form SSA-4240 Annual (CAWR) Report - Adjustment Flag Card for all adjustments prepared. The card should show the reason for the action and be prepared in accordance with RM 02031.000.

    3. If offset items are to be restored, prepare form SSA-4240 as follows:

      1. Show microfilm reference number of form W-3.

      2. Show number of items and wages being restored.

      3. Check “EXD List”.

      4. Annotate in “Remarks” space, To Restore EXD Offsets in Error.

    4. Each case worked on the listing should be annotated whether or not corrective action was required.

  11. Review the designated cases as instructed upon issuance of the listing and those cases as outlined in this section.

    1. Compare the total number of items involved to the employer processed information on the Duplicate Report Processed Listing to determine the relationship of the items to the whole report(s).

      1. Single or multiple reports involved.

      2. Small or large report.

      3. A few items involved.

      4. Many items involved.

      5. Entire report involved.

    2. Review the reported earnings of the items listed.

      1. Large earnings amounts would indicate a single wage item is appropriate.

      2. Small earnings amount would indicate possible multiple W-2 filer.

    3. Review the microfilmed forms W-2 and W-3 to determine if the items are in fact exact duplicates.

      1. Look for evidence on the forms W-2 that would indicate both reported amounts are correct.

        1. Wages reported for two different states.

        2. Reported for different times of the year.

        3. Noted supplemental, etc.

        4. One noted corrected.

      2. All items included in totals on form W-3.

    4. If required, obtain an ERF printout to determine if the correct wage amount is posted. The pattern of earnings may be useful in determining if the offset was proper.

  12. If the duplicate condition is the result of a reinstatement item from a prior processed report, check the related prior duplicate listing to determine previous action.

    1. If previous correction action was required, determine if corrective action is required for the newly listed items.

    2. If no action was required, consider the offset correct.

    3. If previously listed items were not reviewed and it is found from investigating the reinstatement item that corrective action is required, correct previously listed items.

  13. Upon reviewing all material there is no indication that the offset was incorrect.

    1. No action is required.

    2. Annotate listing “Reviewed”.

  14. There is evidence that the multiple filed forms W-2 were legitimate and the offset was, therefore, incorrect.

    1. Prepare the appropriate adjustment forms to restore the earnings items.

    2. Prepare flag card form SSA-4240 to show earnings being restored.

    3. Annotate listing “Multi. W-2 offset in error”.

  15. One of the original postings is found to be a corrected form W-2.

    1. Although no action is usually required if the items are exact duplicates, the corrected report must be reviewed to determine its intent.

    2. Other corrected forms W-2 are in the report but not listed out as exact duplicates.

      1. Obtain an ERF printout for any corrected forms W-2 not reflected on the listing.

      2. The corrected items were processed as corrected. No further action is required.

      3. The corrected items were processed as original.

        1. Take corrective action to cancel the related original items.

        2. Annotate listing to reflect action taken.

      4. It is found that the corrected forms W-2 were supplemental to the original W-2.

        1. Take corrective action to restore the offset items.

        2. In some cases it may be necessary to have the entire report reprocessed as a corrected return if the report is large and there are many changes. See your supervisor before taking this action.

        3. Annotate listing of the correction to reflect action taken.

  16. Examine possible scrambled wage cases. This is where the initials or surnames are different for the duplicate items.

    1. Review the forms W-2.

    2. One is marked void, corrected or there is some other indication they are for the same person.

      1. No action is required if they are for the same person and no other problem is found.

      2. Annotate listing “NAN”.

    3. There is evidence that the forms W-2 are for different wage earners.

      1. Take no action to restore the offset earnings.

      2. Transcribe the following information on Optional Form 41.

        1. Possible scrambled wages found in EXD offset.

        2. SSN

        3. Surnames and initials of both items.

        4. Wages

        5. MRN of both items.

      3. Annotate listing “Scrambled Wage”.

      4. Forward the form Optional Form 41 to the State Reconciliation and Adjustments Branch.

  17. Duplicate wage item possibly for another account.

    1. These cases can be identified on the listing by the total compensation amounts being different for the EXD items, with the sequence numbers of the MRN being within one digit.

    2. Review the forms W-2 to determine if wage earner is listed twice.

    3. Wage earner listed twice:

      1. Take no action unless another problem is indicated.

      2. Annotate listing “NAN”.

    4. Wage earner is not listed twice:

      1. Obtain a ERF printout of the item matching on total compensation or the one before and after if no matching item.

      2. The other item(s) is posted.

        1. No further action is required.

        2. Annotate listing “NAN”.

      3. The other wage earner is not posted.

        1. Prepare an adjustment to establish the earnings.

        2. Prepare Form SSA-7083, Record of Transferred Earnings.

          1. Transcribe the required information.

          2. Annotate card “Wages under incorrect account previously offset as EXD item”.

  18. Examine duplicate items of single reports when one of the following conditions are present.

    1. There are many exact duplicate items for small earnings (usually under $500).

      1. Determine if the multiple earnings are legitimate. Some reasons are:

        1. Union Vacation Fund.

        2. Intermittent employment (various times of year).

        3. Bonus Fund.

        4. Various locations of employment.

      2. No action is required if items appear to be exact duplicates reported in error.

      3. If items are legitimate multiple earnings, handle as follows:

        1. Prepare an adjustment to re-establish earnings.

        2. Prepare flag card form SSA-4240.

        3. Notify the State Reconciliation and Adjustments Branch of the multiple forms W-2 filers involving vacation or bonus funds using Optional Form 41 and transcribing the following information:

          1. “Multiple W-2 Filer”

          2. EIN

          3. Name of employer

          4. Year of report

          5. MRN

      4. This information will be used to identify items under the EIN as exception items instead of exact duplicate items.

    2. There are many duplicate items with up to four postings.

      1. In cases of missing reports, quarterly earnings listings have been used to establish the annual earnings.

      2. If this condition is found, prepare an adjustment to re-establish the earnings offset in error.

      3. The adjustment amount must reflect the consolidated amount to be re-established to avoid a subsequent duplicate adjustment investigation.

  19. Examine cases where partial duplicate reports are apparent.

    1. A partial duplicate report is when an employer files an entire new original return with some changes.

    2. Either it will add, delete or correct several items.

    3. These reports can usually be identified by the total number of employees being similar, with most of the items being exact duplicates.

    4. These cases when identified will be examined in an attempt to find and cancel the partial duplicate items in error, if apparent.

    5. Examine the reports to determine if they are partial duplicates and which is the correct report.

      1. Using the dates on the forms W-3, consider the latest one filed to be the correct one.

      2. Look for some annotation on the forms, or obvious reporting error on one of the reports.

      3. If reports were processed in different years, consider report in latest year to be correct.

    6. If the correct report can be determined, cancel the partial duplicate items from the incorrect report.

      1. Prepare adjustment form SSA-6044.

      2. Prepare flag card form SSA-4240.

      3. Annotate listing “Partial Duplicate Items Canceled”.

    7. The correct report or partial duplicate items cannot be identified.

      1. Take no corrective action.

      2. Annotate listing “Partial Duplicate Items Unresolved”.

      3. Notify the State Reconciliation and Adjustments Branch of unresolved partial duplicate cases using Optional Form 41 and transcribing the following information:

        1. “Unresolved PD Case”

        2. EIN

        3. Name of Employer

        4. Year of Report

        5. MRN's of Reports

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RM 02031.004 - Review Offset Duplicate Posted Items List -- 1865 (DEO-ERB) - 09/04/2012
Batch run: 09/04/2012