TN 8 (11-93)

RS 01401.250 Loans and Debts

A. DEFINITION

Loans are debts by the employee. A payment to an employee before he/she does the work is a loan if:

  • work is not planned in the future; or

  • employee agrees to repay in cash instead of working.

B. POLICY

The agreement between the employee and employer determines when a debt is paid by the employee's work and, therefore, when wages are considered paid.

If the agreement is made after the work is done, wages are deemed paid on the date of the agreement.

If the agreement is made after the debt is incurred but before the work is done, wages are paid on the date the debt is canceled.


To Link to this section - Use this URL:
http://policy.ssa.gov/poms.nsf/lnx/0301401250
RS 01401.250 - Loans and Debts - 12/06/1993
Batch run: 01/27/2009
Rev:12/06/1993