TN 8 (08-84)

RM 02031.006 Investigate Matched Duplicate Original Wage and Tip Items — 1865 (DEO-ERB)

  1. Exact duplicate original wages and tips amounts are listed as exceptions on the Duplicate Posted Items Listing and although both amounts may be correct, in many instances the tips are in error. These cases usually involve single statements.

  2. When it is found that the tip entries are in error, all tip items reported on the report are to be canceled, not just those on the listing.

  3. Examine the items listed on the Duplicate Posted Items listing and take appropriate action as indicated below:

    1. If the sum of the FICA wages and tips is equal to or is less than the total compensation, then:

      1. Consider the tips legitimate.

      2. Annotate listing “NAN”.

      3. No other action is required.

    2. If the FICA wages, tips and the total compensation amounts are equal to each other, then:

      1. Consider the tips in error.

      2. Prepare adjustment form SSA-6043 to cancel all tips reported on the report.

      3. Prepare Flag Card SSA-4240.

      4. Annotate listing “Tips Canceled”.

  4. If the total compensation is not reflected on the listing (as would be the case where processed as a delinquent) or if a determination cannot be made using the total compensation, examine the microfilm of the related form W-2 and /or W-3 (The employer's pattern of reporting may also be used in making the determination.)

    1. If tips are not reflected on form W-2 or it can be determined that the information in the tip field is not tips, then:

      1. Prepare an appropriate adjustment form to cancel the tips, and

      2. Prepare Flag Card SSA-4240, as in C.2.c. above, and

      3. Annotate listing “Tips Canceled”.

    2. If the form W-3 does not reflect tips and/or trade name does not reflect tip employment, then handle as in “1” above.

    3. If form W-3 reflects tips or trade name indicates possible tip employment, then:

      1. Take no corrective action, and

      2. Annotate the listing “NAN”.

  5. If items are from a prior year's postings, check the related year's listings (or Flag Card File if required) to confirm that corrective action was taken for all items. These prior year items are usually the result of their being reinstated in the current posting year.

  6. Bring any unusual cases to the attention of your supervisor.

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RM 02031.006 - Investigate Matched Duplicate Original Wage and Tip Items -- 1865 (DEO-ERB) - 03/14/2012
Batch run: 03/14/2012