Program Operations Manual System (POMS)
TN 11 (09-87)
RM 03844.038 Removing Tips Where Amounts of Less Than $20 Are Shown on Employer Reports
A. Tips Alleged And Amounts Of Less Than $20 Were Reported
Where FO development indicates that the reported amounts of less than $20 are tips (reported by the employer and/or the employee) and not wages, prepare a Form SSA-7010 U5 to effect the removal of the earnings.
Prepare a closeout letter per RM 03803.071. Include an itemization of the tips being deleted. Explain the reason for removing the tips from the earnings record. Advise the individual to request a refund of any taxes withheld by the employer.
B. Tips Not Alleged Or Questioned
Do not delete the tips from the earnings record.
Do not refer to tips in the closeout letter.