When work deductions are required, the law specifies that we make deductions from
current year benefits beginning with the first month of entitlement in the year, and
continuing until all "excess earnings" are withheld. When we receive a new estimate
late in the current year or a revised estimate that requires additional withholding,
any payments that were made earlier in the year are considered to be "incorrect payments".
We are allowed to immediately withhold any current year benefits that are due in order
to recoup any "incorrect payments" that were made. The beneficiary has no right to
appeal this action. (The beneficiary may submit a new work notice if our action was
incorrect). Incorrect payments may only be withheld from current year benefits.
At the end of the year, when we know how much the actual earnings were, we then make
a determination of benefits payable. If the beneficiary was overpaid, he or she receives
a notice of our determination and has a right to appeal the overpayment. If no appeal
is made or if the appeal is unsuccessful, we can then withhold the overpayment for
the prior year, from the current year benefits.
However, benefits due for other than the current year (e.g., an underpayment for a
prior year) are used by T2RD to adjust incorrect payments for the current year, but
may not be used in manually processing estimates.