TN 10 (10-94)

RM 03870.080 Earnings Reported After NH's Death

A. Background

Beginning tax year (TY) 1988, during validation of the AWR process, the Numident is checked for the reported SSN to determine if a death report has been received for that SSN.

When a date of death (DOD) is found and the year of death is prior to the year of the reported earnings, the Office of Systems (OS) posts the earning on the MEF and:

1. TY 88-90

  • Offsets wages with a source code of E for TY 88-90 or,

  • Tags self-employment (SE) earnings with an E source code. SE items are not offset.

2. TY 91 and later

Places all earnings, wages and SE, into Suspense with an Earnings After Death Report (EADR) code for TY 91 and later.

3. Earnings After Death

Earnings After Death (EAD) are earnings which have been reported to a NH's SSN for any year after the year of the NH's reported death.

B. Policy

1. W-2 Report for Year after Year of Death

Employers often report death gratuities and other special payments to survivors, in the year following the worker's death as wages.

2. Source of Death Information

Numident death data are obtained form both SSA and non-SSA sources and may not be accurate. The DOD may be the result of:

  • A T1 history posting for a NH on another SSA; or

  • A survivor claim on the NH's account, particularly in abandonment or disappearance cases; or

  • A match with a State death record. In some cases the source of the DOD is unknown.

SSA will attempt to verify whether the W-2, SEI report or Numident death record is erroneous and, as necessary, will correct the appropriate record(s).

3. Disclosure of Death Information

Disclosure policies prohibit release of death information received from State and local government entities. DO NOT tell the employer or NH that death information exists on SSA records.

C. Process

1. EAD Earnings Identified

OCRO identifies all earnings reports for any year after the NH's death.

  1. a. 

    TY 88-90 EAD reports are posted to the MEF and:

    • If wages, offset with a source code of “E”; or

    • If SE, tagged with an “E” source code but not offset.

  2. b. 

    Effective TY 91 EAD items, wages and SE are placed into the Suspense file with an EADR code.

2. EAD Investigate File

The Office of Systems (OS) produces an EAD Investigate File for the Wilkes Barre Direct Operations Center (WBDOC) to contact the NH or employer as in C.3. below.

3. WBDOC Action

  1. a. 

    The WBDOC forwards:

    • Form SSA-L4112C1 (Social Security Request for Employment Information) to the employer for employment verification, or

    • Form SSA-L3400C1 (Social Security Notice) to the NH if he/she is self-employed.

  2. b. 

    WBDOC reviews the employer response on the SSA-L4112C1 and:

    • Takes no action if the employer states the NH is dead; or

    • Sends Form SSA-L3044 (Social Security Notice to Employee) to the NH shown on the W-2 advising the NH that the wages do not appear to belong to him or her if the employer either does not respond or does not provide new information on the Form SSA-L4112C1, and

    • Forwards all other employer responses to OCRO for review.

4. OCRO Action

OCRO takes the following action upon receipt of the EAD responses:

  1. a. 

    Obtains Numident, DEQY and MBR.

  2. b. 

    Forwards claims cases to PC for development.

  3. c. 

    Attempts to resolve the discrepancy in non-claims cases. If OCRO resolves the issue, the appropriate corrective action is taken, if necessary.

    If OCRO cannot resolve the case, they will either request FO assistance via memorandum to the FO specifying the action necessary, or if IC is available in both offices, (OCRO and the FO), transfer the case to the FO via IC. (MSOM EM 031.002)

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RM 03870.080 - Earnings Reported After NH's Death - 09/16/2016
Batch run: 09/16/2016